With mortgage rates falling below 3 percent for the first time in a half-century last week, thanks to Federal Reserve Policy, more first time home buyers and homeowners are likely to take advantage of the low-interest rates.
The average rate on 30-year fixed mortgages has fallen below 3 percent for the first time according to the nationwide survey of mortgage rates released by Freddie Mac. The survey showed the average 30-year mortgage fell at 2.98 percent, the lowest reading since Freddie Mac began publishing the data in 1971.
And while the country is in the midst of the battle against the coronavirus and millions of Americans have lost their jobs due to the pandemic, the collapse in mortgage rates has made homeownership more affordable.
According to Mortgage Bankers Association, there is a spike in mortgage applications since the interest rates began a series of declines. Though mortgage applications fell at the start of the pandemic it bounced back when people returned to work following months of coronavirus lockdown orders and shuttered businesses.
The low-interest rates have also brought a spike in refinancing demand where homeowners can replace their current home loan with a new one. The low-interest rates are also engaging first-time home buyers to jump into the market.
Comparing interest rates in the past years, the decline in interest rates now would save a significant sum in monthly payments. Think about how much money a homeowner can save over the life of the loan. That’s a huge saving.
If you’re thinking about taking advantage of lower interest rates, here are a few things to keep in mind.
- Shop for lenders and find the best mortgage terms.
- To get the best interest rates, improve your credit score
- To qualify for better interest rates, take the time to build up your downpayment
- Consider a different term than the 30-year fixed-rate loan
- Have steady employment or a constant source of income.
COVID-19 UPDATE:
As the global COVID-19 public health emergency continues to become a concern, we at the J.Michael Manley Team care for your health and safety. We have gathered resources that will provide the latest COVID-19 information and guidance from our local government, as well as real estate information that will help you move forward with buying a home during these uncertain times. Click here to get the latest COVID 19 Response & Real Estate Information.
If you are worried about how to move forward with buying a home during these uncertain times of the “COVID-19”, yet do not want to miss out on the amazing mortgage rates. We are here to ease your stress anyway possible. Here is what we are doing to make sure you are buying a home safely and securely.
If you have any other concerns or needs, please reach out to us! We are here for you, and we’re all in this together.
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