Mortgage Rates Hover over Historic Lows

mortgage3Two very timely articles this month give a very clear picture on the benefits of buying a home when the interest rate is low. Brexit helped us lower interest rates for a while and although they have gone up slightly we are still in an excellent time for mortgage rates.  What could be more encouraging than the chief economist for Freddie Mac stating that this summer is a great time to buy a house or refinance?  Take a look at these two articles below and then call me so we can discuss your particular needs and I can put you in touch with a mortgage broker who will take excellent care of you.

 

Average fixed mortgage rates ticked up slightly across the board but remain near historic lows, according to the recently released Freddie Mac Primary Mortgage Market Survey®(PMMS®).

“Post-Brexit volatility tapered off over the last two weeks, allowing interest rates to bounce back a bit from their record and near-record lows,” says Sean Becketti, chief economist, Freddie Mac. “The 30-year fixed mortgage rate increased 3 basis points to a still-quite-low 3.45 percent. With the Federal Reserve on hold and the UK monetary authority taking at least a one-month breather, we don’t expect any significant movement in mortgage rates in the near-term. This summer remains an auspicious time to buy a home or to refinance an existing mortgage.”

As Becketti noted, the 30-year fixed-rate mortgage (FRM) averaged 3.45 percent with an average 0.5 point for the week ending July 21, 2016, up from the last week when it averaged 3.42 percent. A year ago at this time, the 30-year FRM averaged 4.04 percent.

The 15-year FRM averaged 2.75 percent with an average 0.5 point, up from the last week when it averaged 2.72 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.interestrates-150x150

The PMMS shows that the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78 percent with an average 0.5 point, up from the last week when it averaged 2.76 percent. A year ago, the 5-year ARM averaged 2.97 percent.

For more information, visit www.freddiemac.com

Reprinted with permission from RISMedia. ©2016. All rights reserved.

If you think that interest rates don’t matter very much when you take out a mortgage, look at this chart of mortgage rates over the years and the amount of money you can borrow as the interest rate changes:

mortgage payments and interestThis graph shows a 4% interest rate and the rates are even lower than that at the moment.  This means you can afford twice as much house as you could if the interest rate was 11.5%.  They always say a picture is worth a thousand words and this certainly illustrates the benefit of lower interest rate.

What is the take away from these statistics?  NOW is definitely the time to buy especially in the Naples area where the summer has been very quiet and sellers are anxious to see offers.  The house of your dreams might be closer than you think!

Give me a call so we can discuss your options.  I have wonderful mortgage brokers available who will work hard for you and get you into the best program for you.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a low mortgage rate!

 

 

 

 

 

Courtesy of Keeping Current Matters August 2016

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