Mortgage Rates are Steady – Now the Time to Buy a New Home

Mortgage Rates are Steady – Now the Time to Buy a New Home
  • Opening Intro -

    For most people around the world, buying a home is their biggest investment.

    Taking out a mortgage provides a convenient method of financing the purchase.

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Traditionally, high interest rates had made it challenging for people to use this strategy. Thankfully, the mortgage interest rates have been declining gradually and finally settled at the lowest they’ve ever been. This is a great sign for those who want to buy a home. Read on to discover why Mortgage rates are steady – and now is the time to buy a new home.

Lowest point after long decline

The mortgage rates are now firmly pegged at 4.45%. This is the lowest that they’ve been after a slow decline lasting 9 months. This is the benchmark fixed rate for 30 year mortgages. Homeowners seeking a 15 year mortgage get to pay an interest rate of 3.38%.

These are the lowest mortgage rates in a long time. They are also expected to remain at that level for a long period of time to come. This spells out great news for homebuyers.

Why are the mortgage rates low?

Mortgage interest rates normally depend on the 10 year US Treasury Note. It is the foundation upon which mortgage rates are set. This year, the interest rate on this note has declined significantly. The stock market has also experienced a sharp decline.

While both factors are a boon for investors, they are great for homebuyers. Seeing as the interest rate for mortgages is low and the overall economy is stable, this form of financing is now within reach for majority of potential homeowners.

A point to note

The average mortgage interest rate usually does not include the extra fees. These fees are known as points. Borrowers need to pay these points so as to gain access to low interest rates. Today, the fees for both the 30 and 15 year fixed rate mortgages are steady at 0.4 points. As such, always take note of the points required for you to secure a mortgage at the current low interest rates.

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A rise despite current conditions

The interest rate on 30 year and 15 year mortgages experienced a decline. However, that of the 5 year adjustable rate mortgage went up. It rose from 3.87% to 3.9%. The point for this type of mortgage remained stable at 0.3. As you search for a new house, it is advisable to go for the 15 or 30 year mortgages. That’s because the interest rate is low and you have much more time to settle the debt.

Conclusion

The mortgage rate is at an all time low. This is great news because you can now get a home in an affordable way. You can take advantage of the remarkably low interest rate on 15 and 30 year mortgages. This gives you access to comfortable financing. Feel free to share this good news across all your social media accounts. It is a great time for you to achieve your dream and buy a new home!

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