Is Now The Right Time To Buy?

Is Now The Right Time To Buy?

Have any of you ever seen such low mortgage rates? I know I haven't! I remember growing up my parents always used to tell me how they bought their first home at an 18% interest rate. Wow! This week I put a nineteen year old first time home buyer in a new home at 2.375% and he moved in with only $500 out of pocket. 

Now, no one can tell you when the right time to buy or sell is but here at The Morcom Group we want to make sure you have all the current real time information to make sure you make an educated decision. As stated from the world property journal “Mortgage rates fell below 3 percent for the first time in 50 years. The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets.”Home buyers have rushed back into the market eager to take advantage of these low rates. In case you were wondering, here is what the current stats look like for a 30,15 and 5 year loan:

30-year fixed-rate mortgage averaged 2.98 percent with an average 0.7 point for the week ending July 16, 2020, down from 3.03 percent. A year ago at this time, the 30-year FRM averaged 3.81 percent.

15-year fixed-rate mortgage averaged 2.48 percent with an average 0.7 point, down from last week when it averaged 2.51 percent. A year ago at this time, the 15-year FRM averaged 3.23 percent.  

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.06 percent with an average 0.3 point, up slightly from last week when it averaged 3.02 percent. A year ago at this time, the 5-year ARM averaged 3.48 percent.

With the world being on edge because of the current pandemic many believe that the market will crash resulting in lower prices. Here's what it would look like if you end up buying a cheaper home but you miss out on these low rates.

If the crash  does happen it might not be a good idea to wait. Because of the historically low mortgage rates your payment is actually more likely to be cheaper to buy now.  Research your options, check out some homes, get pre-approved and let's get you into your new home! 

We also know refinancing is at an all time high because of these rates being so low however this may not be the best decision. Find out why in our next blog about Amortization: Is Refinancing Right For You?

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Citation

Rachid, Monsef. “U.S. Mortgage Rates Fall Below 3 Percent, Breaking 50-Year Record.” World Property Journal, WORLD PROPERTY JOURNAL, INC., 17 July 2020, www.worldpropertyjournal.com/real-estate-news/united-states/washington-dc-real-estate-news/real-estate-news-lowest-mortgage-rates-in-history-record-low-mortgage-rates-pmms-freddie-mac-primary-mortgage-market-survey-july-2020-12036.php.