On Thursday, Freddie Mac reported the rate on a 30 year mortgage fell to 3.83% and the 15 year fell to 3.05%. These are all time new lows. In comparison, last year during the spring selling season rates were 4.63 %. According to Frank Nothaft, vice president and chief economist, Freddie Mac. "Following April's weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week. The economy added just 115,000 jobs, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs."
While this is great news if you are in the market for a new home, how long these rates will last is an unknown. On a $300,000 mortgage the difference in payment from last years to this year would be $140 per month. Or looked at a different way, a $1800 per month mortgage payment will buy $35,000 more home at a rate of 3.84% vs 4.63%. While no one can predict interest rates into the future, all signs point to increase in the future and as the example illustrates the same home will cost more money. Just as we are starting to see increasing prices for homes due to limited supply and large demand, it is inevitable that we will see the same occur in the mortgage market. These two combined together have all the signs of quickly turning the environment into a "Sellers Market."
More information about mortgage and finance including Home Affordability Calculators and Detailed Interest Rate Information and Mortgage New can be found at Mortgages and Financing or call us at 561-862-9858
The Vogin Team is your one stop choice for all of your real estate needs. With over 10 years of experience in real estate we have the expertise and experience to give the professional service your desire. Whether you are looking to buy or sell a home in South Florida we can help you. Learn more at http://www.voginteam.com
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