30 Year Fixed Rate Mortgage Rates Go Below 4%!!!
In recent blogs, we've been tracking the at times quite dramatic falls in mortgage rates.
This week has seen another significant milestone as the average 30 year fixed home loan went below 4%, averaging just 3.99%.
Not only is this likely to be a key psychological figure for buyers, it is also the lowest we've seen rates since the beginning of 2018.
According to Freddie Mac, the average 30 year fixed mortgage rate in May last year was 4.59%, so rates have descended a long way in the past 12 months.
The highest average monthly figure recorded last year was 4.87% in November. Since then rates have steadily declined, month by month, largely fueled by a range of negative economic news, including jitters in the stock market and concerns over the status of USA/China trade negotiations.
We are now looking at a very different picture from the rather more pessimistic initial forecasts for real estate in 2019. Buyers currently have a fantastic opportunity to lock in a low rate and, of course, such a significant drop in the cost of a home loan over the past few months has actually positively impacted on buying power, allowing buyers to consider a wider cross-section of properties.
It would be a mistake, however, to assume that this downward direction will continue indefinitely and changes in international and national financial scenarios could easily pave the way for rates to head North once more.
Therefore savvy buyers and sellers should look at the highly favorable situation at present and consider if it's in their best interests to act sooner than later.
Don't be alone in this process, however. Please feel free to contact us on 619-886-0175 to discuss your situation and any aspect of the current Coronado area market.