Is now a good time to buy a home? Have you been on the sidelines waiting to time the real estate market? Well “if” so – it looks like you might be in the driver’s seat getting ready to enjoy the ride. It looks like buying a home today pencils out pretty good right now for those that have been waiting on the sidelines.
Are you tired of paying ultra-high rents? Well if you have been renting you know that rents are at an all-time high. And if you have been paying attention to home mortgage rates – they are approaching all-time record lows. And with the incredible available low home loan rates – investing in your future and buying a home is most likely a smart move.
The truth is – nobody has a magic ball to time the market perfectly. Bottom line – you’ll need to do the math and see if buying a home today makes good sense. I’m just going with what I see today and looking at the numbers. And for those in a position to buy a home right now, there’s no doubt in my mind the numbers point to “buying a home versus renting one” wins out over the long haul.
Just take a look at the current Freddie Mac's Primary Mortgage Market Survey®
Continuing fallout from the Brexit vote drove Treasury yields lower again this week. The 30-year fixed-rate mortgage followed Treasury yields, falling 7 basis points to 3.41 percent in this week's survey. Mortgage rates have now dropped 15 basis points over the past two weeks, leaving them only 10 basis points above the all-time low.
30-year fixed-rate mortgage (FRM) averaged 3.41 percent with an average 0.5 point for the week ending July 7, 2016, down from last week when it averaged 3.48 percent. A year ago at this time, the 30-year FRM averaged 4.04 percent.
15-year FRM this week averaged 2.74 percent with an average 0.4 point, down from last week when it averaged 2.78 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.68 percent this week with an average 0.5 point, down from last week when it averaged 2.70 percent. A year ago, the 5-year ARM averaged 2.93.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. ***Borrowers may still pay closing costs which are not included in the survey.
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