We’re still in a great spot regarding mortgage interest rates from the home buyer and seller standpoint. Rates on 30 year mortgages increased slightly to 3.66%, remaining still well under 4%. It still remains to be seen what happens next with rates.
“Interest rates have been just north or south of 4% since January 2015. The rates move back and forth due to economic factors and Federal Reserve strategic moves,” commented Gerard DiRuggiero, Principal Broker of UrbanLand Company. “The reason for the focus on 4% as a line so much is because all economic forecasts for late 2015 and 2016 called for rates to go up significantly.”
When interest rates stay low, the real estate market tends to pick up in activity. “Interest rates are the key to controlling the monthly costs of ownership. Under 4% rates are almost an all-time low,” continued DiRuggiero. “This comes at a time when real estate values are driving up the cost of rent. In DC particularly, rents are rising fast.”
What’s not rising fast? 30 year mortgage interest rates. “Housing prices continue to go up, but these low rates really give first time home buyers a huge advantage that was not available in years past. You literally have very reasonable monthly payments if you control your spending level,” said DiRuggiero. “This is a time when you can purchase and lock in a low monthly payment for 30 years, if you never move during the term of the mortgage. Of course, you will move. Rising real estate values give you appreciation and earnings on your home investment when it is time to sell. Buying right now gives you those 2 solid advantages. ”
What’s all this really mean? If you’re a prepared home buyer, you can secure 30 years of mortgage payments at 1 low rate, depending on which week you actually purchase. “If you’re seriously considering buying but haven’t taken the time to get ready, we offer a fast track to smart ownership – our UrbanLand Company Home Buyer Workshops give you the tools & info you need to make a strategic move, including how to use $0 Down / easy 100% financing programs that DC offers,” concluded DiRuggiero.
UrbanLand Company Home Buyer Workshops have produced $19.3 million in purchased homes since 2014 for DC and Maryland residents, many of which are $0 Down or low down payment loans. To find out next Workshop dates, RSVP here. Workshops are FREE of charge and are held at 913 Florida Ave. NW. near the U Street METRO.
Here’s some of the homes we’ve sold to Workshop attendees!