Another trend in 2021, which you may already know is that the mortgage interest rates are still historically low! The average mortgage interest rates (that fee lenders charge as a percentage of your loan amount) have been so low that buyers are still able to purchase with confidence in the seller’s market we are experiencing.
In fact, the average rate for a 15-year fixed-rate mortgage dropped to 2.31% in November 2020—the lowest it’s been since Freddie Mac started reporting nearly 30 years ago! Economist geeks think interest rates will continue to hover around 3% in 2021!
What Lower Rates Mean for Buyers
Sure, interest rates are low right now—which can help with affordability. Just be careful not to let that pressure you into buying a more expensive house when you aren’t really ready. A super-low interest rate on a house you can’t afford is still a bad deal. So remember to stick to our advice on monthly payment limit, down payment amount and mortgage type and you’ll be in great shape!
What Lower Rates Mean for Sellers
If interest rates remain low, buyers will be more motivated to buy your home sooner than later. But if interest rates do start to increase later in the year, your house could be on the market a little longer. If you don’t plan on moving anytime soon, you might still be able to take advantage of these low-interest rates and shorten your payment schedule by refinancing.
If you want to take advantage right now while the mortgage rates hover around 3% and capitalize on this great opportunity, I and my team at GoalLine Real Estate www.goallinerealestate.com can help you!
If you want to refinance or start the loan process from a trustworthy lender who educates you and cares about helping you pay off your home as quickly as possible, talk to our friends at Fairway Mortgage. www.applywithteamtevis.com. This is the time to do it as mortgage interest rates are still historically low!
Beth Brake REALTOR®
Positively changing your life as you move forward to your dreams.