Now is the time to make the move with interest rates at a 12 month low. Home buyers have enjoyed more than 10 years of low interest rates. Those of us who remember the days when we got 10% APY on CD interest and paid close to 20% on an APR, understand that today’s rates are arguably the best in our nation’s modern history.
“According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at their lowest for 2019. Rates like these haven’t been seen since February 2018!
Last week’s survey results reported an interest rate of 4.35%. This is a welcome change from the near 5% rates seen in mid-November. At 4.32%, the second week of February 2018 was the last time rates were this low. This can be seen in the chart below.” Keeping Current Matters reported last week.
On March 1 2018 you could get 4.43 on a 3oYr. Rates rose throughout the year to 4.94% on the same loan.
So, if you remember the “old days”, you can’t help but wonder, why is this such a big deal? The rate swing in the last 50 years has been enormous comparatively.
Let’s take a look at the Amort Examples in the link. With just a tiny difference in rate between 4.35 and 4.45 over a 30 year term, the difference in interest paid is close to $14,000.
Who wants to spend an extra $14,000 if they don’t have to??
Rates tend to go up during the spring and summer months ending each year a little higher than it started… Ergo: Now is the time to buy.