Interest Rates have declined. Now might be the time to buy a home

Kitchen area of a home

Mortgage Rates Hit Record Lows for Three Consecutive Weeks

Mortgage Rates Hit Record Lows for Three Consecutive Weeks | MyKCM

Wow!

 

Over the past several weeks, Freddie Mac has reported the average 30-year fixed mortgage rate dropping to record lows, all the way down to 3.03%. Last week’s reported rate reached the lowest point in the history of the survey, which dates back to 1971 (See graph below):Mortgage Rates Hit Record Lows for Three Consecutive Weeks | MyKCM

What does this mean for buyers?

This is huge for homebuyers. Those currently taking advantage of the increasing affordability that comes with historically low-interest rates are winning big. According to Sam Khater, Chief Economist at Freddie Mac:

“The summer is heating up as record low mortgage rates continue to spur homebuyer demand.”

In addition, move.com notes:

“Summer home buying season is off to a roaring start. As buyers flooded into the market, realtor.com® monthly traffic hit an all-time high of 86 million unique users in June 2020.  This breaks May’s record of 85 million unique users.  Realtor.com® daily traffic also hit its highest level ever of 7 million unique users on June 25.  This is signaling that despite the global pandemic, buyers are ready to make a purchase.”

Clearly, buyers are capitalizing on today’s low rates. As shown in the chart below, the average monthly mortgage payment decreases significantly when rates are as low as they are today.Mortgage Rates Hit Record Lows for Three Consecutive Weeks | MyKCMA lower monthly payment means savings that can add up significantly over the life of a home loan. It also means that qualified buyers may be able to purchase more home for their money. Maybe that’s a bigger home than what they’d be able to afford at a higher rate, an increasingly desirable option considering the number of times families are now spending at home given today’s health crisis.

Bottom Line

If you’re in a position to buy a home this year, now might be a good time to buy. Let’s connect to initiate the process while mortgage rates are historically low.

About the Author

I have been a Realtor in Central Florida since 2006. I live and work in Polk County. I am a straightforward person who refuses to cut corners and places emphasis on honesty and integrity in the home buying and selling process. I firmly believe that it is my duty to serve others and to use my negotiating skills to obtain the best price for the sale of any home. I will take disciplined initiative in all aspects of any transaction, invests timeless effort to build a strong and lasting relationship with all clients, and streamline all aspects of the real estate processes with exceptional skill and diligence. I take pride in professionalism and continue to educate myself and adapt to the ever changing conditions of the real estate market.

Leave a Reply

Your email address will not be published. Required fields are marked *