Long-term US mortgage interest rates declined last week, after a steady rise over the past year that lead to our highest-level mortgage interest rates in more than four years. Freddie Mac reported that the average rate for a 30-year, fixed-rate mortgage recently fell from 4.58 percent to 4.55 percent. One of three great reasons to buy a home right NOW…
Ask any professional Realtor® why it’s time to buy and they’ll tell you:
- Today’s interest rates will likely continue to increase. But what does that mean for you as a home buyer?
Imagine your mortgage principal is $200,000. If you secured your mortgage with a 3.87% interest rate, the total interest you’d pay over the course of the loan will be $138,571. Now, if you secured a mortgage with a 5% interest rate, the total interest you’ll pay over the course of the loan climbs to $186,152, a difference of $43,581!!!
Locking-in a lower interest rate will save you thousands of dollars, which is why securing a loan now is in your best interest.
- Homes are becoming more expensive. Home prices have been steadily rising for over 5 years. Extensive labor shortages and spikes in material costs are causing home prices to climb.
- If you wait, you’ll have fewer homes to chose from. Low inventory (when there are too many people buying homes and not enough homes for them to buy) drives up home prices, resulting in less inventory for the home buyer to choose from.
Fun Fact: In October of 1981, the average mortgage interest rate for 30-year mortgages reached an all-time high of 18.63%.