Could we finally be headed for a lower interest rate environment? Recent trends seem like good news for home buyers and investors! Let’s dive in!
If you’ve been following the housing market, you know it’s been quite a ride for the last 24 months. In October 2023, mortgage interest rates reached 10-year high at an average rate of 7.79%! That had many potential buyers pressing pause on their home search.
But guess what? Rates are going down! As of today, the average 30-year fixed rate mortgage is 6.47% and some buyers are locking in rates in the mid-5% range with an interest rate buy-down. That’s the lowest we’ve seen in the past year! So, why is now a great time to buy? Let me break it down for you.
First, lower interest rates of course means a more affordable monthly payment. As a home buyer or investor, you can get more house for your money; and as investor, your cashflow numbers will look better due to the lower mortgage payment.
Second, due to the record high interest rates, a lot of home buyers have been on the sidelines, and if they aren’t paying attention and tracking the market like you and I are, they still may be. Fewer buyers means less competition and potentially more room to negotiate!
Remember, interest rates can fluctuate, and the lower they go, the more buyers will enter the market and the more home prices will increase. It could be a good time to buy now, lock in a lower cost basis for that perfect home or investment property and then refinance in a couple of years if the interest rates look more favorable! So get off the couch, stop watching Dancing with the Stars, and let’s start building your financial future through real estate!
