Interest Rates at an All Time Low! How Has This Impacted Real Estate?
The contents of this blog post are intended to convey general information only and not to provide legal advice or opinions.
Mortgage interest rates were slashed once again in March for a 2nd consecutive week. This drop marks the fifth cut in only seven weeks. This last cut by the Fed has resulted in the lowest interest rates there has ever been in history, since their inception!
Comparatively speaking, rates are down significantly from where they were in recent history:
Compared to this same time last year, interest rates for a conventional 30-year fixed mortgage are down 112 basis points.
Since the peak rate in November 2018 of 4.94%, interest rates for a conventional 30-year fixed mortgage are down a whopping 165 basis points.
If the rates were not low enough, the Fed is expected to drop this once again this month!
What does this mean for homeowners and purchasers?
The low interest rates are compelling buyers to buy now because they know this opportunity will not last forever. This is keeping the marketplace healthy for both buyers and sellers. Buyers are saving thousands in interest payments over the course of their 30 year mortgage. This incentivizing factor for buyers is keeping them in the market to buy, which maintains interest in the listings of sellers.
Many homeowners are taking advantage of this opportune time in the mortgage marketplace to refinance their homes in order to lower their monthly interest payments or cash out on a portion of their home equity at a lower rate. Choosing to refinance at this time can save homeowners thousands in interest payments throughout the course of their remaining loan balance.
The current mortgage interest rates have been fantastic for everyone across the board, whether you are in the market to buy or sell or are a homeowner paying off their mortgage. Buyers and homeowners are both saving thousands of dollars, while the sellers of homes maintain an interested pool of buyers.
If you are in the market to buy or sell or are a homeowner wondering how these low interest rates can save you tons of money, please contact me below and I will connect you with my affiliate mortgage broker who can offer money-saving solutions and very competitive rates!
For more information on the current rates visit: https://finance.yahoo.com/news/u-mortgage-rates-fall-record-034216598.html
Marios Milonas
Licensed Real Estate Salesperson
(917) 297 - 1630
Keller Williams Realty Landmark