Interest Rates have dropped below 6%, AND we are seeing most Sellers paying for this point. Now could be the perfect time to consider Buying, Selling, or Investing in Real Estate. With Mortgage Rates trending down, it’s time to take a closer look at how this shift could impact your plans.
Mortgage Rates Down a Full Percent from Recent High
- Mortgage Rates have been a hot topic due to their impact on affordability.
- If you’ve been waiting for Rates to drop, the recent trend may be what you’ve been hoping for
Mortgage Rates Trend Down in Recent Weeks
- Recent economic reports and Federal Reserve comments have led to a decline in Mortgage Rates.
- According to Freddie Mac, Rates are now at a level not seen since February.
Greg McBride, Chief Financial Analyst at Bankrate, says:
“The hopes for lower Interest Rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% Mortgage Rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”
The Relationship Between Rates and Demand
- Lower Mortgage Rates could lead to increased competition as more Buyers resume their searches.
- Typically, higher Rates reduce Buyer demand, but when Rates drop, demand picks up.
Bankrate notes:
“If you’re ready to Buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if Mortgage Rates do fall below 6%, it’s possible Buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”
Here are some Highlights you need to know:
- FHA – 5.5%
- First Time Home Loan – 5.875%
- Conventional 5% Down – 6.125%
- Jumbo – 5 Yr ARM 6.35% or 7.125% 30 Yr Fixed
- Doctor Loan – 6.0% 7 Yr ARM
- Construction Loan – 6.25% 7 Yr ARM
- Land Loan – 6.625% 15 Yr
If you’ve been waiting to make your move, the recent downward trend in Mortgage Rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.
Are you looking to Buy, Sell, or Invest soon? Have Questions? Contact us today to get started!
Written by Georgia Hippe, Digital Media Marketing Assistant