If you’re in the market for a new home or looking to refinance your existing mortgage, now is the time to act! Mortgage rates are dropping to the lowest rates in more than a year. With the current economic climate and market conditions, it’s a prime time to capitalize on these favorable rates.
Why are mortgage rates dropping?
Mortgage rates are dropping for various reasons. Recent reports share that the Federal Reserve’s decision to cut interest rates directly impacted mortgage rates, causing them to decrease significantly. Additionally, global economic uncertainty and market volatility have led investors to seek safer investments, such as bonds, contributing to the decline in mortgage rates.
What does this mean for homebuyers?
Lower mortgage rates translate to lower monthly payments, ultimately saving homeowners money over the life of their loan. Whether you’re a first-time homebuyer or a current homeowner looking to refinance, taking advantage of these reduced rates can lead to substantial long-term savings. By locking in a lower rate now, you can secure a more affordable mortgage and potentially even shorten the term of your loan.
According to Freddie Mac, the average interest rate for a 30-year fixed mortgage recently dropped to 6.47%, lower than a year ago at 6.96%. On the other hand, the average interest rate for refinancing with a 15-year fixed rate hit 5.63%, down from 6.34% one year ago.
How to make the most of the current rates
Mortgage rates are dropping, so consider the following strategies to take advantage of the current rates. Along with working with an experienced Realtor, act quickly. Mortgage rates tend to change rapidly. By acting swiftly, you improve your chances of securing a low rate.
Do your research and shop around. Compare rates from multiple lenders to see more options. Not sure where to start or what to ask a mortgage lender? Check out our blog, “10 Questions to Ask a Mortgage Lender When Interviewing,” for tips.
Summary
If you are ready to act fast, contact Ryan Roberts to learn more about local opportunities. From helping navigate the housing market to offering guidance working with lenders and more, the expertise of a local Realtor is invaluable! For more real estate statistics and community news, keep reading our blogs.