Owner Occupied Mortgage Rates Continue to Drop

You may have heard the buzz in the news lately about mortgage rates continuing to drop. For the last month, the interest rates for getting a loan on a new home have kept falling, with the latest rates at 4.06% for a 30-year fixed rate mortgage and 3.51% for a 15-year fixed rate mortgage (according to data released by Freddie Mac on May 23).

Mortgage rates are constantly changing, even from day to day. It’s important to note that looking at trends is helpful but the ultimate decision to purchase a house should be made after discussing and agreeing to specific loan terms with a lender.

What do lower rates mean for buyers, sellers, and other professionals involved in real estate?

Buyers:
Lower mortgage rates mean that banks charge less interest on a loan that they give a buyer for a home purchase. This allows buyers to purchase higher priced homes or move forward with a purchase sooner. High priced homes especially see more offers, as the interest rate makes a bigger impact on the higher purchase price.

Sellers:
This also spells great news for sellers. With more buyers interested in buying, there is more competition for homes that are currently on the market. Sellers tend to get offers quicker, have higher offers, and may even have bidding wars start over their home.

Real estate professionals:
Real estate agents, brokers, and loan officers like low mortgage rates as well because it means more business for them. When rates are high, fewer people are interested in making a home purchase. This is especially true for those who think that rates may come down in the near future.

We will have to continue to watch the housing market to see if the rates continue to drop. As summer approaches, many families are looking at moving. With low rates, now may just be the perfect time to purchase a new home.