Now Is The Time To Buy!
Mortgage Interest Rates Still Low by Historical Standards
We understand that interest rates are a huge factor in buying a home and they can be confusing to follow in this ever-changing market. We are here to help alleviate any confusion about interest rates while showing why now is a great time for homebuyers to get into the market.
Mortgage interest rates are always fluctuating, and despite recent increases, historically speaking, interest rates are still low. When you consider this factor, you will see that now is a good time to buy if you’re able.
Interest Rates Are Historically Very Low
It is important to consider the history of interest rates over time to understand how “high” or “low” mortgage interest rates are today. Since 1971, Freddie Mac (Federal Home Loan Mortgage Corporation) continues to survey lenders for mortgage data. Independent lenders set mortgage rates, but the interest that the Federal Reserve charges banks to borrow money also influences mortgage interest rates. Throughout the 1970s and 80s, unchecked inflation created an erratic national economy. This economic uncertainty resulted in mortgage rates which steadily increased throughout the late 70s and early 80s topping out in 1981.
This chart shows the rise and fall of interest rates since 1971 (see full interactive chart here). At their highest, 30-year fixed-rate mortgage interest rates were 18.63% in 1981. At their lowest, thus far, at 3.31% in 2012. Mortgage rates tend to be higher when the economy is strong, and with the growing economy, Americans are now experiencing a slight increase in mortgage rates. So even though rates have recently risen, you may still be in a strong position to buy.
It is important to note that interest rates are predicted to rise over the next few years, so now would be a great time to buy a home. It may not make sense to sit and wait when you could lock in a great mortgage interest rate today and enjoy the perks that come with watching your investment grow in value. The longer you wait to buy, the higher the chance that you could end up paying more in the end.
For any questions about today’s rates, or getting pre-approved for your dream home, please contact us!
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