Mortgage Rates Hit Record Lows for Three Consecutive Weeks
Over the past several weeks, Freddie Mac has reported the average 30-year fixed mortgage rate dropping to record lows, reaching 3.03%. Last week’s reported rate hit the lowest point in the survey's history, dating back to 1971.
What Does This Mean for Buyers?
This is a huge advantage for homebuyers. Those taking advantage of the increased affordability from historically low rates are benefiting significantly. According to Sam Khater, Chief Economist at Freddie Mac:
“The summer is heating up as record low mortgage rates continue to spur homebuyer demand.”
Move.com notes:
“Summer home buying season is off to a roaring start. As buyers flooded into the market, realtor.com® monthly traffic hit an all-time high of 86 million unique users in June 2020, breaking May's record of 85 million. Daily traffic also hit 7 million unique users on June 25, signaling that despite the global pandemic, buyers are ready to make a purchase.”
Clearly, buyers are capitalizing on today’s low rates. As shown in the chart below, the average monthly mortgage payment decreases significantly when rates are this low.
A lower monthly payment means significant savings over the life of a home loan. It also allows qualified buyers to purchase more home for their money, possibly a bigger home, which is increasingly desirable with more time spent at home due to the current health situation.
Bottom Line
If you’re in a position to buy a home this year, let’s connect to start the process while mortgage rates remain historically low.
