Over the past several years, average mortgage rates have fluctuated but new research shows that today’s rates are much lower than they have been in decades. With lower interest rates it’s easier to afford a home and buying now, instead of next year, could actually help you save money.
Historically Low Mortgage Rates
Research from Freddie Mac shows that the average 2014 mortgage rate is much lower than rates have been since the 1970s. This chart makes it easy to compare mortgage rates over the past few decades, and you can see that today’s average of 4.36 percent is a great rate.
The chart also shows what the average monthly payment for the corresponding rate would be for buyers based on a 30-year fixed rate and a $200,000 mortgage.
In the 1980s when rates where at their highest, it wasn’t uncommon for buyers to pay about $1,169 more for a home than they would pay today with a lower interest rate. You can also see that just 10 years ago, buyers paid an average of $240 more a month for their home than buyers are paying this year.
Why you should Buy Now
With low mortgage rates and affordable home prices, now is a great time to buy a home in the Wellesley real estate market. But, these low rates won’t last forever. In fact, experts expect rates to increase to about 5.3 percent next year so don’t miss this opportunity. When you buy a home now, instead of next year, you could save about $150 each month on your mortgage payments!
Right now the local market is perfect for buyers. There are a lot of homes on the market and more are being added every day. When you start house hunting now you’ll have lots of options and find exactly what you are looking for.
But, with a high inventory and great home prices, homes here are selling in just days. In most cases, you won’t have to wait weeks or even months to close on that dream home. With such a fast-paced market it’s extremely important that you work with a real estate agent.
A local agent will help you navigate the busy market so you can find the perfect home for your family. It’s common for sellers to get multiple offers, so yours needs to stand out. Many sellers are also more likely to work with buyers who are represented by a professional agent. Your agent will help you prepare a professional offer that is more likely to get accepted and then close on the sale.
For more information about local real estate trends, and how you can take advantage of low interest rates to spend less on your new home, visit the Christine Norcross & Partners website. To find a Wellesley home for sale contact Christine Norcross at 781-929-4994.
Image courtesy of KeepingCurrentMatters.com.
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