February 13th, 2020 12:47 PM by Steven Hofberg
Mortgage rates are at their lowest level in more than three years. The average rate on a 30-year fixed rate mortgage dropped to about 3.50%, according to figures released last week by Freddie Mac. Not surprisingly, as a result of such low rates we are seeing a very early start to the Spring home buying season. Sellers want to take advantage of the increased buying power of potential buyers that comes with lower rates.
The increased buying power is a direct result of lower interest rates. In just the last 12 months, rates on a 30-year fixed rate loan have dropped a full percentage point. That translates to a mortgage $70,000 larger with the same monthly payment. For potential homebuyers now looking for a home, that additional buying power will come in very handy in a very competitive market. Last year’s purchaser could today make an offer almost $90,000 higher, assuming 20% down. It’s nice to have that in your back pocket when home shopping.
If you are looking for a home, or planning to look, do yourself a favor and contact Margie for more information. She will be happy discuss your personal situation and run some numbers for you. Knowledge is power.
Steven H Hofberg, Operations Manager