Record Low Mortgage Rates Favor Buyers
How We Got Here
When the great financial recession struck in 2008, it undoubtedly left a bad taste in the mouths of every American. Whether you were seeking a new career opportunity or looking to purchase your first home, the road to accomplishing those goals has been extremely hard for nearly every single one of us. So how did we go from a historic housing market crash to record low mortgage rates?
As the old saying goes, time heals all wounds and recent reports suggest that the housing market is beginning to favor the buyer. While last month’s national employment numbers were down, it’s also caused mortgage rates to plummet the past 12 weeks.
Low Mortgage Rates – What to Expect
Yes, mortgage rates will continue to rise as new jobs are created (according to CNN, the national unemployment rate is currently at 4.7%, the lowest percentage since 2008), but as of right now, it could be a great sign for the housing market as low mortgage rates compel more buyers to finally take the leap and purchase their next home.
Although national home prices are up in cities like Seattle, San Fransisco, Portland, Denver and Dallas, home mortgage rates remain surprisingly low across the country. As of June 6, 2016, 30-year fixed mortgage rates are historically low and 15-year rates are an absolute steal. As recently as 2007, those same numbers were much higher.
Experts agree that now may be the perfect time for home buyers to take advantage of low mortgage rates, as inevitable increases loom in the near future. There is currently a 35% chance that the Fed will impose a price hike in July and a 51% chance of another price hike in September.
Whether you’re interested in purchasing your first home or looking to re-finance and lock in that low mortgage rate, now is the time to consult your local mortgage experts! If you are currently considering either of these home mortgage options, please give us a call today. We’ll work hard to secure you with the lowest rate possible.