With mortgage rates at a 3-year low, now is the time to purchase a home! What exactly do low interest rates mean for the housing market?
Interest Rates at a 3-year Low
There’s no doubt that you keep hearing about low-interest rates and how now is the time to buy. The truth is that now really is the time to buy. Interest rates are at a 3-year low and who knows how long this might last.
According to an article that appeared in the September 4, 2019 publication of the Florida Realtor magazine and published by the Associated Press, mortgage rates currently average 3.48 percent for 30-year fixed-rate mortgage loans. This is based on information released by mortgage buyer Freddie Mac.
It is important to note that the rate of mortgages has a lot to do with the credit score of the prospective buyer. Buyers with very poor credit cannot expect to walk out with the lowest rate possible. It is not reasonable. However, this is an indication that the real estate market nationwide is softening. The good news is that lower interest rates make homes more affordable. This, in turn, encourages people who are looking to buy to become even more serious about purchasing a home. With the current state of economies worldwide experiencing recessionary trends, lower interest rates in the real estate market should help America to not follow suit.
Like anything else, the decrease in rates has cons as well. A higher demand of homebuyers looking for homes due to lower rates is causing home sellers to raise their prices. The rise in price can offset the demand created by lower interest rates. One remedy is to keep a high supply of entry-level homes which would keep prices at a more affordable level.
With over 30 years of experience in the real estate industry, I am here to help you with all of your home buying and selling needs. This is Gitta! Until next time, happy home buying!
