One thing was sure at the beginning of this year: interest rates were going to go up. The Fed said so. Banks said so. Pundits said so. They were all wrong. As of June 1st, interest rates were below 4% on average according to Freddie Mac. As of today (June 14th, 2017), BankRate.com has the average at 4.04% for a 30 year fixed mortgage.
So what does this mean to you? It means that if you are looking to buy than you are still getting historically low interest rates. A simple example of what this means. Say that you wanted to buy a home for $200,000 with a 30 year fixed mortgage. Here are what different interest rates would do to your payment (principal and interest only):
8.12% – $1,484
6.29% – $1,237
4.01% – $956
A change in interest rates can save you (or lose you) $100s of dollars a month or thousands of dollars a year. The Fed, banks, and pundits are all still saying interest rates should go up. Going out and utilizing these low rates is absolutely in your financial interest. If you or someone you know are interested in buying a home, selling a home, or investing in real estate; I am here to help.