Strike now while the rates are still low?

For the past few years we’ve been enjoying mortgage rates that have hovered around the 4% range, and we’ve seen the housing market continue to surge throughout that time. Sales and home values keep trending upward, and it’s a no-brainer that it doesn’t hurt when historic rates like this stick around for an extended time.  Even as home prices and competition climb, the long term benefits of locking in rates so low is hard to pass up!

Rates actually hit their high for the year of 4.3% back in March (average rate, on a 30 year fixed loan), but since then have been on a fairly steady decline, all the way to a low of 3.78% earlier this month. Home buyers have been reaping the benefits of rates below 4% since the middle of July, and we had seen a constant lowering of rates without any uptick at all for two months.

Last week rates finally stopped their downward trend and rose just slightly, and this week that upward shift continued, with rates ending the week averaging about 3.83% now. Where will we go from here?  Well it’s hard to say for sure – the yield on the 10 year Treasury note keeps rising, which can cause mortgage rates to follow, and the economy has been strong, but the incredible economic damage from the recent hurricanes is an uncertainty still.  If you look at our history over the past 3 years, the lowest rate we’ve seen is the 3.42% we dropped down to last July, and it may just be that this September’s lows will be the low for the year.  If you’ve been lucky enough to lock in your rate in the last month, then good for you!  If you’re thinking of buying, now is as great a time as we’ve seen in awhile, and it sure seems like a smart bet to take these rates while you can.

Remember that your REALTOR can always connect you with a great loan officer, and we’re here to help you find the right property for you and help get your deal done quickly so you can take advantage of current rates. Contact us today with any of your Real Estate needs!