How Interest Rates Can Impact Your Monthly Housing Payments

By
Real Estate Agent with REMAX Realty Group Lic. # SL3154233

Spring is right around the corner, so flowers are starting to bloom, and many potential homebuyers are getting ready to step into the market. If you’re thinking of buying this season, here’s how mortgage interest rates are working in your favor.

Freddie Mac explains:

“If you’re in the market to buy a home, today’s average mortgage rates are something to celebrate compared to almost any year since 1971…

Mortgage rates change frequently. Over the last 45 years, they have ranged from a high of 18.63% (1981) to a low of 3.31% (2012). While it’s not likely that the average 30-year fixed mortgage rate will return to its record low, the current average rate of 3.45% is pretty close — all to your advantage.”

To put this in perspective, the following chart from the same article shows how average mortgage rates by decade have impacted the approximate monthly payment of a $200,000 home over time:

Buying a house in 2020

 

Clearly, when rates are low – like they are today – qualified buyers can benefit significantly over time.

Keep in mind, if interest rates go up, this can push many potential homebuyers out of the market. The National Association of Home Builders (NAHB) notes:

“Prospective home buyers are also adversely affected when interest rates rise. NAHB’s priced-out estimates show that, depending on the starting rate, a quarter-point increase in the rate of 3.75% on a 30-year fixed rate mortgage can price over 1.3 million U.S. households out of the market for the median-priced new home.”

 

information provided by KCM

Bottom Line

You certainly don’t want to be priced out of the market this year, and waiting may mean a significant change in your potential mortgage payment should rates start to rise. If your financial situation allows, now may be a great time to lock in at a low mortgage rate to benefit greatly over the lifetime of your loan.

Call your local realtor Abby Stiller with REMAX Realty Group who can guide through the buying process! 239-284-8637 Abby Realtor habla Espanol!

 

Posted by

 

Abby Stiller 

Realtor® Lic. #3154233    

12 Years of Experience

RE/MAX Realty Group    Cape Coral Fort Myers Naples  Realtor Cape Coral      

 

I help Home buyers find their dream home & Homeowners sell for more. Thinking of buying or selling? Call/Text me: 239-284-8637   Your Honest & Dedicated Realtor!

or visit: www.TeamStiller.com

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Florida Lee County Cape Coral
Tags:
realtor
home buying
loan officer
downpayment assistance
preapproval letter
fha loan
rsw
home interest rates

Spam prevention
Show All Comments
Rainmaker
3,280,167
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great week.

Mar 09, 2020 02:47 AM #1
Rainmaker
5,670,612
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Smart consumers are anxious to take advantage of the very attractive mortgage interest rates.

Mar 09, 2020 04:26 AM #2
Rainmaker
847,689
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

The low rates are a reason not to procrastinate, and if they drop further you can always refinance. The low rates also allow you to use a 15 year mortgage, often with even lower rates and get your home paid off even sooner.

Mar 09, 2020 05:25 AM #3
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
514,623

Abby Stiller

Professional Bilingual Realtor (239) 284-8637
Ask me a question
*
*
*
*
Spam prevention