If you’ve been watching the news recently, you know that mortgage interest rates decreased by about a half a point from 3.71 percent, to 3.56 percent, for a 30-year fixed mortgage loan.
Mortgage interest rates haven’t been this low since October 2016 and the reason the Federal Reserve decided to cut rates so quickly is due to the economic implications from Corona Virus.
Should You Buy A Home Now?
These are interesting times that we’re living in. Besides Corona Virus, we’ve also recently seen the stock market lose over $100 billion in value while companies around the world are changing their economic projections for 2020 as the virus is poised to affect almost every aspect of our daily lives.
The good news though is that the Federal Government is acting fast and doing everything it can to stop an economic collapse in the United States by lowering interest rates, proposing tax cuts and other solutions to keep the economy going.
With the lowest interest rates that we’ve seen in almost four years, the big question is should you buy a house now? Your answer to this question should be yes. Lower mortgage interest rates mean that you will be paying a lower house payment every month for a 30-year fixed mortgage loan and you will have more buying power than you did before this latest rate cut.
Example: Before the latest rate decrease, you may have only been pre-approved for a mortgage loan of $500,000. After the rate cut, you may now be able to qualify for a mortgage loan of $525,00 to $550,000.
Should You Sell Your Home Now?
Have you been thinking about selling your home because you want to upgrade to another home in Southern California, or elsewhere in the United States?
Now is an excellent time to sell a home because, with additional buyers on the market taking advantage of low interest rates, your home is going to receive more interest than it did before the latest rate cut.
With an increase in buyers on the market today, this also means that your house could also receive multiple offers. This is a win-win situation for any homeowner who is thinking about selling their home right now.
Contact the Fred Sed Group
To learn the latest information about the mortgage interest rate cut, or to speak with us about selling your home, contact the Fred sed Group today by calling us at (800) 921-9231 or connect with us online.