Interest rates on 30 year mortgages have dropped back below 4%, and the feds say that rates most likely won’t change that much in the next several weeks, in a recent report by Freddie Mac. Rates have been on the higher side of 4% for about 6 weeks.
Rates on a 30 year ended last week at 3.98%. In 2014 at this time, rates were 4.12%. “Rates of course have a different effect on your monthly payment as it spreads across the 30 years of the mortgage. Small and large movements in interest rates do impact your affordability and how much you can purchase. If rates don’t move much in the coming weeks as the feds say, then buyers should consider this a window of opportunity,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “If you’re tired of renting, now’s the time to get locked in at this great rate!”
Why do we cover interest rates? It’s another key component of affordability no matter what your price point. “While you’re somewhat at the mercy of the feds regarding interest rates, you can certainly take advantage of the valleys and peaks of mortgage interest rates. Economists did forecast that rates would hit over 5% by the end of 2015, so sub-4% now with 4 months to go in the year is a big deal!” continued DiRuggiero.
Want to know more about how rates affect your payments? UrbanLand Company’s Buyer Workshops have all the answers, and also a clear-cut pathway to home or condo ownership that you can start right away. The Summer Workshops also focus on Offseason Buying Strategies that you should be paying careful attention to if you’re planning on using programs like DC Open Doors or Maryland’s Mortgage Program. “It can be tough for buyers using financing assistance programs to compete at the offer table when they find a home they really, really want. We have methods, coaching and agent representation available from the Workshops that make your dreams a reality.”