If you have been watching the news recently, then you would know that this week the 30 yr. mortgage rate dipped below 4% for the first time in 2014. The 30-year fixed-rate mortgage averaged 3.97% last week, down from 4.12% the week prior and 4.28% the same time last year. the average hasn’t been below 4% since the week of June 20, 2013, when it was 3.93%. For anyone in the house-hunting stage, this is welcome news. Rates have been low all year, but there’s a lot of savings to be gained from seemingly small numerical shifts in interest rates.
- Mortgage Rate – The rate of interest charged on a mortgage. Mortgage rates are determined by the lender in most cases, and can be either fixed (stay the same for the term of the mortgage) or variable (fluctuate with a benchmark interest rate). Mortgage rates rise and fall with interest rates and can drastically affect the homebuyers’ market.
- More Than Just an Interest Rate – Low interest averages will be just a small part of the equation to establish what you might owe for a loan payment. Low rates could be availalbe, but you’ll have to qualify for them. One way to achieve that goal is to check your credit score for accuracy, or for things that you can fix to improve your score.
- Be Ready – As a buyer make sure you are prepared for the buying process, organize your budget, and look for homes that fit your price area. Focus on finding a home that will fit in your monthly budget after accounting for things like loan interest, mortgage insurance, homeowners’ association fees and other costs associated with homeownership.
- Realtor – Talking to a Realtor who knows the industry better than anyone can also help you be prepared for the buying process; as well as, help you in finding the home you want. The power of having a real estate agent on your side will only benefit you during the whole process.
The mortgage rate is just one of many factors that can effect the housing industry and has substantial effect on the home buying market. You as the home buyer, It is important to do your research, talk with professionals who know the industry, and make sure you are as informed as you can be in the buying process. Talking to a professional licensed Realtor is a great way to start in the buying process. Follow the button below to request a FREE Buyer Home Match.