Mortgage Rates are sitting near record lows and this is amazing news for today’s homebuyers. The graph below shows mortgage rates dating back to 1972 and where today falls in comparison.
In most cases, when mortgage rates are low, you can afford more home for your money. Experts across the industry believe today’s low rates present buyers with an extraordinary opportunity. “As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time,” Sam Khater, Chief Economist at Freddie Mac, said. The chart below shows the annual averages since 1972, 2020’s monthly averages from July-December, and 2021’s current monthly averages.
“Those who have not yet taken advantage of low rates to buy a home or refinance still have the opportunity to do so this summer,” Danielle Hale, Chief Economist at realtor.com, said. “We expect mortgage rates to fluctuate near historic lows through the summer before beginning to climb this fall.”
In other words, buyers who choose not to act soon could potentially see higher rates in the next few months, negatively impacting their purchasing power. However, although mortgage rates are still low today, the data from Freddie Mac indicates rates are currently fluctuating slightly. In the week of August 5-12, the 30Y FRM was 2.87%, the 15Y FRM was 2.15%, and the 5/1 ARM was 2.44%. It is important to keep in mind that rates have a significant impact on your monthly mortgage payment. See the chart below.
Do not assume waiting to buy a home will save you money. The longer you wait, the more you will pay as mortgage rates and home prices start to rise. See the chart below for a look at how the cost of waiting can add up when mortgage rates and home prices are on the rise!
Today’s rates will give you some flexibility with homes you can afford. Do not wait on the sidelines and hope for a better rate to come along! Today’s rates are worth capitalizing on. Call Michele Harmon Team at 713-818-1330 today to discuss today’s rates. We can connect you with a reputable lender and start your journey to homeownership today!
* Source: Freddie Mac’s Primary Mortgage Market Market Survey®, Liz Harrell, Private Mortgage Banker at Wells Fargo. Rate shown is the rate on a 30-year fixed-rate mortgage on a prime conventional, conforming loan with an LTV of no more than 80%. Fees and points associated with these rates are not shown. The average fees and points charged with these rates from 2009 forward has been 0.62 points. One point represents one percent of the loan amount. These are historical industry figures and don’t necessarily reflect rates offered by WFHM. PMMS data is provided “as is,” with no warranties of any kind, express or implied, including, but not limited to, warranties of accuracy or implied warranties of merchantability or fitness for a particular purpose. Use of the data is at the user’s sole risk.