Market Minute Monday – CNN Reports Record Low Mortgage Rates
March 16, 2020
This segment is for all you metric-minded individuals.
Without further ado, let’s get to it.
In the first 10 days of March, the average 30-year fixed rate mortgage dropped to a nearly 50 year low of 3.29%. The 15-year fixed rate dropped to 2.79%. Considering the rising prices of homes, this is particularly good news for anyone interested in buying a home in the near future.
On March 10th, the Federal Reserve announced an emergency rate cut. This slashed the benchmark interest rate range down to 1 to 1.25%. The cut, along with a rock bottom 10 year Treasury yield and continued COVID-19 fears, means mortgage rates could be poised to head even lower.
“It’s definitely a good time for someone looking to buy a home to get financing,” said Mark Hamrick, senior economic analyst for Bankrate. “Home prices have risen, and it is rough for those looking for a bargain, but the financing has gotten better.”
That’s a silver lining if we’ve ever heard one. Potential buyers have better financing options. Demand for inventory is also inherently increased by the presence of new buyers in the market. Whether you’re an investor or retail buyer, it seems to be a win-win situation.
“On the cusp of the spring home buying season, these rates are well timed,” said Hamrick. “However, favorable rates alone aren’t necessarily going to bring new buyers into the fold.”
While that’s the case, it still holds true that if you are one of the people who have been waiting for the right time to purchase your first home, this may be it. Interest rates may continue to get lower in the coming weeks or months, true. However, once people start to take advantage of them, they’ll inevitably rise again.
To read the full article, click here.
As always, we wish you the best in your real estate pursuits.
Stay tuned for more blog posts and feel free to contact us via our contact page.