Interest Rates Hover At Historic Lows
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”
- Sam Khater, Chief Economist at Freddie Mac
With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.
Comparing the Past 50 Years
Increased Mortgage Applications
Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:
“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”
Opportunity To Save BIG
With mortgage interest rates hovering at all-time lows, today’s purchaser has the opportunity to save tens of thousands of dollars over the lifetime of the loan.
For example, we can see that there’s a big difference between purchasing a house last year and purchasing one now (see chart below):
The Bottom Line
Now is the time to take advantage of these low interest rates. If you need assistance finding a reputable lender, we have a list of local professionals that understand our SWFL market, and continue to provide 5-star service to our clients.