The 30-Year Fixed-Rate Mortgage Continues to Trend Down
Heading into the holidays, mortgage rates have been moving down significantly over the past six weeks for potential homebuyers. This is great news for those looking to purchase a new home, but new data indicates that current homeowners may be hesitant to list their properties—specifically, more than two-thirds of homeowners have a fixed mortgage rate of below four percent. It appears that many are carefully weighing their options in this uncertain economic climate.
What’s behind Low Mortgage Rates?
The federal reserve has kept interest rates low throughout the pandemic to provide financial stability during uncertain times. This has translated into lower mortgage rates which is great news for potential buyers who can take advantage of these historically low rates and save money on their monthly payments. With current rates being at historic lows, many lenders are offering borrowers attractive loan offers with no points or origination fees, making it an even better deal for borrowers who qualify.
Benefits for Homeowners
For homeowners already in possession of a fixed-rate mortgage, this presents a unique opportunity as well. Many of these homeowners are taking advantage of refinancing at lower interest rates to reduce their monthly payment and free up cash flow for other needs such as investing or paying off debt. Refinancing also provides homeowners with an opportunity to tap into equity they have built up in their homes over time, giving them access to additional funds if needed.
Mortgage rates continue to remain low heading into the holiday season, providing potential homebuyers with an opportunity to purchase a property at attractive prices while saving money on their monthly payments. Current homeowners can also benefit from the low interest rates and refinance their mortgages at lower rates if they choose to do so. No matter what your situation is, now seems like an opportune time to take advantage of these historic low mortgage rates and make your move!
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