Are you thinking about buying or selling this year?
Yesterday, the US Mortgage rates dropped to an all time low since May of 2013 with 30 year fixed rate at 3.73%! This decrease in rates is great news for buyers and sellers, as it helps increase buying power across the board. With a $500K sales price, and 10% down, this rate drop would save buyers over $180/month*, or $2160 a year compared to rates in 2014. Over 30 years, and that’s a saving of $777, 600!
Rates for 2014 started high, at 4.43% in January, dropped a bit in the spring, hovered around 4.15% for the summer and fall months and continued to decline below 4% into the end of the year. The average rate for 2014, was 4.17% on a 30 year fixed rate loan. Annual averages for 2013 came in at 3.98%, and 3.66% for 2012. Rates for a 15 year loan have also dropped and are averaging around 3% for 2015.
Many may be asking, “why did rates drop?” Simply put, concerns about Europe and Asia’s political and economy status are causing investors to focus on U.S Treasury bonds. The 10 year Treasury yields dropped below 2 ( for the first time in several months), lowering the mortgage rates as well. Its hard to say how long rates will stay this low, but if you are thinking about buying or selling in 2015, it may be a great time. Additionally, if you are looking to refinance your home, this is another great opportunity for a lower mortgage rate.
If you’d like to learn more about rates, and how this can help you save on buying a home contact us for more details!
*Calculations based on $500K, 10% down, principle & interest only, rates: January 2014 at 4.3% and January 2015 at 3.73%. Actual rates are subject to individual credit, income and financial qualifications.