Over the past several weeks, Freddie Mac has reported the average 30-year fixed mortgage rate dropping to record lows, all the way down to 3.03%.
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What does this mean for buyers?
This is huge for homebuyers. Those currently taking advantage of the rising affordability that comes with low interest rates are winning big. In accordance with Sam Khater, Chief Economist in Freddie Mac:
“The summer is heating up as record low mortgage rates continue to spur homebuyer demand. ”
Additionally, move.com notes:
As buyers flock to the current market, realtor.com® monthly traffic hit an all-time large of 86 million unique users in June 2020, breaking May’s listing of 85 million unique users. Realtor.com® daily traffic also hit its highest level of 7 million unique users on June 25, signaling that despite the international pandemic buyers are prepared to make a buy. ”
Clearly, buyers are capitalizing on now &rsquo. When prices are as low as they are today, as shown in the chart below, the monthly mortgage payment declines significantly. Simplifying The Market” width=”650″ height=”366″ srcset=”https://okchomesellers.com/wp-content/uploads/2020/07/20200715-MEM-Eng-2.jpg 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2020/07/14154055/20200715-MEM-Eng-2-533×300.jpg 533w” sizes=”(max-width: 650px) 100vw, 650px”>A lesser monthly payment means savings that can add up significantly over the life span of a house loan. It also means that qualified buyers might be able to buy more house. Perhaps that’s bigger home than what theyrsquo;d manage to afford in a higher rate, an increasingly desired option considering the amount of time families are currently spending at residence given now ’s health crisis.
In the event that you’re in a position to buy a house allow ’s connect to initiate the procedure while mortgage rates are low.
This post was originally posted on Simplfy the Market