Have You Noticed Interest Rates Recently?

Here is some really great news for you…Average U.S. mortgage rates started 2021 near historic lows and have hovered in that vicinity through January. That news has likely reached and encouraged you, but emphasizing in real terms how much it will benefit your bottom line can provide valuable context for your homebuying or an investment purchase decision.

The average rate for a 30-year fixed-rate mortgage was 2.77% as of January 21, according to Freddie Mac. The average was 3.62% in January 2020 and 4.46% in January 2019, 85 basis points and 169 basis points higher, respectively, than the current rate. A buyer who purchases a $300,000 home at the average rate today would save just over $100,000 during the mortgage term compared to purchasing the same home two years ago—and the monthly payment would be almost $200 less.

Limited housing supply and low mortgage rates have contributed to increased competition and home prices, but the cost of borrowing money for a home is currently so low that you may be able to afford more than you would have one or two years ago.

Speaking of mortgage rates, I just got two investor homes under contract and each was a super low 2.75% rate which is excellent for an investment or as in the case of these, rental home investments!

Click this link for an informational graph

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Steve Young