No doubt you’ve heard that mortgage rates are low. They’re lower than they’ve ever been in history. The news is everywhere. Just check out some of these headlines from the last 24 hours: *
Mortgage rates set new lows for the sixth straight week (Reuters)
* Mortgage rates fall again; 30-year fixed at 4.54% (Wall Street Journal)
* Mortgage rates hit another low : 4.54% (NPR)
Fixed mortgage rates are now down more than 1/2 percent from the start of the year, and 3/4 percent from just 1 year ago. The drop has dramatically improved home affordability for home buyers in Tennessee while creating refinance opportunities for existing homeowners. From a payment perspective, a conforming, 30-year fixed rate mortgage is now cheaper by $41.94 per month per $100,000 borrowed versus June 2009.
A homeowner with a $300,000 mortgage, therefore, is saving $45,294 over 30 years. Low mortgage rates rarely last long and rates appear to have flattened. After a big downhill between April and July, they’re now stable. This could mean rates have finished falling, or that they’re gearing up for another drop lower. Either way, if you haven’t talked to your real estate agent about home affordability, or your lender about refinancing, it may be time to make that call. If today’s market marks the end of low rates, rates are expected to rise quickly.