Good News for Buyers Mortgage Rates Drop
The latest real estate data for the month of September has come in and one thing is clear, if you are looking for a lower interest rate, now is a great time to buy a home. According to Freddie Mac, interest rates were dropped last month in response to the U.S. Treasury rates dropping due to a slower than anticipated growth in the jobs market. Mortgage rates rise and fall in part alongside the treasury rates, it is a standard component used by organizations like Freddie Mac and Fannie Mae to keep the housing market in line with our jobs and financial markets. Because job growth in September was as low as it was, home buyers have been given a bit of an edge.
When it comes to buying, you want to watch mortgage rates for at least a few months, and review the history over the previous year to get an idea as to when the rates may be at their best for you to take advantage of them for a lower mortgage. When you have a lower interest rate, more of your monthly payments are going toward your principal, helping you pay down your mortgage faster. As of October 9th, the average mortgage rate for a 30 year fixed loan is down to 3.76% compared to 3.85% the week before. Last year at this time, the average interest rate was 4.19%. In looking at these figures you can see that a little as one week can make a difference as well as a larger spread of time. The average rate for a 15 year fixed loan was also down, to 2.99% compared to 3.07% the week prior.
At some point when you are ready to buy your home, you will need to make the jump and apply for your mortgage loan. Your final rate will also depend on your credit rating and how much you have toward a down payment. I recommend watching the rates as you are in the process of searching for a home. With a pre-approval statement for how much of a loan you qualify for, you will be ready to make an offer when you do find the home you want. Part of your searching and offer process should include a review of current mortgage rates as well, to help you plan for when you begin the official loan process and determine what your mortgage rate will be. This will help you get the most out of every dollar toward your new home.
I will continue to watch the interest rates for new trends and let you know when there are significant changes which can affect you in the process of buying a home. As a Realtor, it is my job to help you stay informed of information that will help you make best decisions for you and your family. I am proud to be able to make the real estate process move smoothly for my clients and I am here to help with all of your real estate needs. If you’re looking for a warm and engaging professional to help you with the purchase or sale of your home, contact me today at 407-234-5313 or by email: Jeff@JeffRoyle.com.