30-year fixed rate inched up to 4.46% with an average of .5 point this past week. In comparison to a year ago, our mortgage rates were at 4.22%.
Mortgage rates, like the stock market, fluctuate on a daily basis. Home prices can change, but not as frequently as mortgage rates. With mortgage rates expected to rise over 5% this year, it’s important to take advantage of “cheap money” and a softening housing market.
For example, let’s say you want to purchase a $350,000 condo later this year. You’re planning to put 20% down and your anticipated mortgage rate is 5%. Using those metrics, your monthly mortgage payment would be approximately $1,500.
Now, let’s say you wanted to purchase that same condo today. With a rate of 4.46%, your monthly mortgage payment would be roughly $1,400. That’s $100 less per month than if you were to buy later this year.
Okay, what would your monthly mortgage payment be if you purchased last year? With a rate of 4.22%, your monthly mortgage payment would be roughly $1,370. You would have saved $30/month if you bought last year than today. $30/month might not seem a lot, but it sure adds up over the long run.
If you’re ready to purchase your first home, it’s important you commit to the process. One of the worst things you can do is to wait. Stop dragging your feet; let me help you take advantage of our sub 5% mortgage rates.