In October, the average conventional 30-year, fixed-mortgage rate dropped below 4%, a historic low. In addition the average conventional 15-year, fixed-rate mortgage also fell to 3.28% from 3.72% just over a year ago. These rates have remained steady ever since the historic drop. So what does this mean for you as a homebuyer?
Of course, you need to take into consideration your own financial situation, but if you are planning on taking out a mortgage then with these rates, this could be the perfect timing for you. Essentially, lower interest rates mean a lower monthly payment, more house for your buck. If you were eyeing a home at $200,000 a year ago, you could probably get a home today for $250,000 with the same monthly payment. Depending on how comfortable you are with your finances, you could spend more on a nicer home or buy the home you originally wanted and save money in your monthly payment. Is this the right time for you to buy? With these rates it very well could be.
If you have any questions or would like to discuss your home buying options, feel free to contact me.