It’s no secret that interest rates have been slowly climbing. But, there’s no need for panic!
Last week’s Freddie Mac Primary Mortgage Market Survey revealed that interest rates for a 30-year fixed rate mortgage have fallen to their lowest mark this year, at 3.88%. This is great news for homebuyers looking to purchase and homeowners looking to refinance. The rate you secure greatly impacts your monthly mortgage payment and the amount you will ultimately pay for your home.
Since January, interest rates have hovered around 4% for the majority of the year helping to balance out the rising home prices and helping to maintain affordability for many home buyers. Experts predict that rates will increase slightly again by the end of 2017. For 2018 the prediction is for the rate to be about three-quarters of a percentage point higher, at 4.5% by the end of year. So a year-and-a-half from now, if the experts are correct, we’re still looking at a GREAT rate!
To put this into perspective, let’s take a look at a historical view of interest rates over the last 45 years.
While no one wants to hear of mortgage rate hikes, we do need to think realistically about what the current news actually means. Interest rates are still historically low and will remain historically low for the foreseeable future. We can be thankful that you can still get a better interest rate than your aunts and uncles did ten years ago, and a lower rate than your parents did twenty years ago. You’re even getting a great bargain compared to your grandparents 40 years ago!
So if the media hype of rising rates have soured your thoughts of buying, think again! This is still a fantastic time to become a homeowner.