According to Freddie Mac, one of the leading sources for rate forecasts in the US, mortgage interest rates are near 14-month lows as of June 2019. Due to market fluctuations, trade tensions, and other political concerns, this is the lowest rates have been in a long time—since January 2018 to be exact! But while most rates are well under 4% right now, there’s a good chance they will climb soon to reach the average year-end predicted rate of around 4.38%.
So, what does this mean for homebuyers and homeowners today? It means that if you’ve been sitting out of the market, whether to buy or refinance, it could be the perfect time to jump back in. Let’s look into it:
Refinancing:
According to data and analytics firm Black Knight, nearly every mortgage loan originated in 2018 could see a rate drop via refinancing. These lower interest rates present a rare opportunity for Americans to improve their financial health.
A 0.80% lower rate on a $350,000 mortgage translates into a savings of $170 per month.
Buying:
A lower interest rate means more house for the same payment. Compared to last fall, the same mortgage payment will buy over $35,000 more house. That could mean getting a 4-bedroom instead of a 3-bedroom!
Conversely, the same house now costs less per month; a $275,000 house would now cost $120 less per month, compared to last fall.
As you can see, it’s great time to take advantage of these low interest rates—whether you’re buying a new home or refinancing your current home. Whatever it may be, Evergreen Mortgage would love to help you! Give us a call today.
