Mortgage Rates Hit All-Time Low!!
Updated: Mar 10, 2020
This past week the Federal Government made the decision to cut already low interest rates even further.
This past week interest rates were cut once again and now hit an all-time low in almost 50 years. The Feds slash interest rates by a 50-basis-point cut! Although this sounds like a repeat on last week blog.... look at current 30 yr fixed... its even lower! This brings the current rates to:
15 year Fixed Rate 2.79%
30 Yr Fixed Rate 3.29%
But..... is now really a good time to buy, sell, or even refinance your home?
According to the chief economist Danielle Hale at realtor.com, the low rates might "entice home buyers out to shop as well." "That's certainly the Fed's hope"
"We will see a mini housing boom the rest of the year," says Todd Huettner, a real estate and personal finance expert and president of Huettner Capital, in Denver. "It may get some people off the fence and motivate those that had not looked over the winter. I think it will take a little longer to draw people off the sidelines, but that should happen by the time the traditional buying season kicks off in a few months."
We are already seeing an increase in demand in the current market for housing, which again goes back to the supply and demand that we have been looking at over the past months. Many individuals are rushing to take advantage of the low interest rates and who can blame them.
Historically the rule of thumb has been in order to consider refinancing you should have a 2% decrease in rates. However, now lenders are stating that even with fees and appraisals a homeowner may benefit from a 1% decrease in rates.
If you are considering refinancing make sure that your monthly savings will be enough to offset the cost of the refinancing itself; which generally is $3-5,000. Also, if you are planning on moving within the next few years it may not be worth it.
Another question of concern is should you hold out for an even lower rate? No one can really predict this.... but by looking at where the rates are... you have to decide if you want to take that chance or go ahead a put the ball in motion. If you are looking to buy or sell ..... you may not want to wait as you could miss out on getting the Best deal.
It is the Christmas Season for the housing market. Look for an agent that will be aggressive and work to quickly move you through the process.