March 2020: Rates have dropped one percentage point since March 2018, currently resting at 3.45%. If a buyer has good credit, this means the same-priced home from a year ago may be more than 10% cheaper today in monthly mortgage payments. For some buyers, this may be enough of a savings to land the purchase of a home they have been eyeing or even purchasing a home in a higher price range than previously able to.
Lower interest rates also offer an ideal time to refinance a mortgage for a better rate. Of course, consulting with your lender to run the numbers is in your best interest. You could experience a large savings and reduced mortgage payments or find yourself breaking even because of refinance fees.
With lower interest rates available, more buyers enter the real estate market making it an ideal time to sell property. Sellers may find there is a larger pool of buyers interested in their property. Buyers benefit from additional homes for sale, but could feel pressure to act quickly once they find the home they desire.
Whether buying or selling, look for a real estate brokerage that offers solid negotiation skills, local market knowledge and thorough communication to bring you the highest return on your investment. See what PRIMESTREET can do for you.