Friends and Clients --
We've set a new record. In fact, we've set a bunch of them. Let me explain.
Throughout 2020, the 30-year fixed mortgage rate hit a new low eight separate times.
The most recent record happened only a few weeks ago when we reached a never-before-seen 2.88%.
Could rates continue to drop? If you are looking to buy or refinance your mortgage, should you wait to scoop up an even better deal in the months to come?
In theory, rates could indeed continue to go lower—all the way down to 0%.
That's never been seen here in the U.S. However, it's a current reality in other countries, such as Denmark and Finland.
Such a scenario is unlikely to happen here. It would require the Fed to make its rates negative, and keep them there for years. That's something Fed executives said they are opposed to.
Still, even if rates don't go all the way to 0%, they still might go lower than they are now. Several mortgage brokers have offered rates as low as 1.99% recently. However, you need to be careful if you see such offers.
The ultra-low mortgage rates that have been offered recently all came with very high upfront costs, which tacked on thousands of dollars right out of the gate.
The fact is, when considering a new mortgage, it’s important to look at several factors. These include the interest rate, upfront costs, and monthly payments. Sometimes, it might be better to get a loan with a slightly higher interest rate in exchange for lower costs.
So what does all this mean for you?
Well, current mortgage rates are the lowest on record and are far below anything ever seen in the real estate market.
These low rates are making homes more affordable.
While there is a chance that rates will go still lower, there is also a chance that this is as good as it gets. Additionally, many of the lower rates that are popping up aren't as good as they seem at first blush.
That's why I think it makes sense to consider taking advantage of the current low rates.
Of course, this is a complex question. It makes sense to because they can help you get the best possible rate with the best attached conditions.
If you are looking for financing, give me a call at 512-829-8000. I know and work with several top lenders I can recommend. They can guide you through this complex issue and help you come out the other end with the best possible solution.
If you are just considering buying, take a look at some of the beautiful homes that recently came on the Austin market:
Have a great day,
Looking to buy a home? Looking to sell a home?