We know this is a challenging real estate market for buyers and sellers. However, being informed is half the battle.
During a recent Open House I had the opportunity to spend time talking with one of my favorite Local Kenosha Lenders; Mark Kuyawa of Fairway Mortgage. We discussed the pros and cons … and today I want to share some facts and thoughts for you to consider regarding long term mortgage rates and how things could affect homebuyers moving forward.
It’s not all GLOOM and DOOM!
- Today’s 30 year fixed rates have dropped below 5% for the first time in months.
- Rates are about .25-.385% lower than 2 weeks ago.
- Mortgage rates were not directly affected by the increase of prime rate .75% by the Federal Reserve last week.
- Mortgage rates actually dipped last week again.
It is still a great TIME TO BUY!
Did you know a buyer with a 620 credit score or higher could qualify for a 0% down loan at 5% interest as of today? For example: A $150,000 purchase price would equate to payments of $1187/month assuming annual taxes of $3000/year. This is lower than what many are paying for rent these days. And Rent keeps climbing! Homeownership has other benefits like a “tax deductible” mortgage interest and real estate taxes. As always, you should consult with your tax professional for your personal situation.
In many cases, you could close on a new mortgage loan in 3-4 weeks and be moving into your New Home in less than a Month!
With summer coming to a close and children going back to school soon, many potential buyers have put home buying on the back burner. With fewer buyers looking to buy right now comes ”less competition” for those homes. And, It may be possible to buy closer to list prices again as opposed to the recent bidding wars – with buyers paying often several thousand dollars over list prices.
Even with interest rates 1.50% higher than in January of this year, the same $150,000 house payment has resulted in an increase of about $131/month. This is an amount most family’s budgets could easily handle. In comparison, that same $150,000 home that was selling for $180,000 not too long ago would have had a total payment of $1361/month or $174/month higher than the $150,000 sale. So, as you can see, the increase in rates has less of an affect than the increase in sales prices.
As always, be sure you work with a reputable local real estate professional who can help you find the right home and can pro-actively negotiate the best price for you – for the location, condition and price you are willing and able to pay. Likewise, choosing a reliable and professional local lender to work with to help you find the best loan programs, interest rates and terms for your situation. And to prevent as little anxiety and stress as possible, be sure you provide all requested information to your mortgage lender in a prompt and timely fashion so you can close on time!
Both Mark Kuyawa of Fairway Mortgage and Diana Dahlberg of 1 Month Realty look forward to serving all of your real estate and mortgage needs. We are waiting for your call! Let’s chat at your earliest convenience!
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Mark Kuyawa, Lender – (262) 496-9547 – [email protected]
Diana Dahlberg, Broker/Owner/Realtor/ABR/ePro/MRP – 1 MONTH REALTY – (262) 308-3563 – [email protected] – https://www.1Month.com
