Think Interest Rates Will Stay Low? Think Again...
At Exit Realty All Pro, we stay alert to all the latest real estate news in order to inform and educated our clients, customers and community. Our friends at Keeping Current Matters explains why waiting for interest rates to dramatically drop again is not a wise decision. It is a message that important to repeat to you...
"One thing seems certain: we aren't likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012."
- Freddie Mac, March 24, 2014
There are those that hope that 30-year mortgage interest rates will head back under 4%. Obviously, for any prospective home purchaser that would be great news. However, there is probably a greater chance that interest rates will return to the greater than 6% rate of the last decade before they would return to the less than 3.5% rate of 2012.
Freddie Mac, in one of four original posts on their new blog, explained that current rates are still extremely low compared to historic averages:
"The all-time record low – since Freddie Mac began tracking mortgage rates in 1971 – was 3.31% in November 2012. Conversely, the all-time record high occurred in October of 1981, hitting 18.63%. That's more than four times higher than today's average 30-year fixed rate of 4.32% as of March 20...rates hovering around 4.5% may be high relative to last year, but something to celebrate compared to almost any year since 1971."
If you are thinking of buying a home, waiting for a dramatic decrease in mortgage rates might not make sense.
If you have a real estate need, the professionals at Exit Realty All Pro will fullfill it for you. Whether buying, selling, renting or even if you just have a question, consider Exit Realty All Pro your best real estate resource.
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