The average rate for a 30-year fixed mortgage has hit an all-time low, now at 2.71 percent.
This, based on data released from Freddie Mac, represents the 14th time this year that this average has hit historic lows.
So, how can you take advantage of this historic opportunity?
Does this mean it’s a great time to buy?
Not really. Mortgage rates are insanely cheap, and this is certainly driving more buyers to the closing table. With this increased Buyer demand, coupled with outrageously low housing inventory, housing prices have gone through the roof in 2020, which has generally offset any Buyer savings due to the interest rate. If you do find an affordable house that meets your buying criteria, you better act fast, with properties routinely going off the market within days of listing. Please work with a professional Realtor you trust.
Should you think about refinancing?
Absolutely, positively yes. You should explore refinancing.
If you own your home and plan to stay there for at least 2.5 years, I recommend you contact a lender immediately to get a free quote (and I’m happy to recommend a couple of people I trust). You would need to front some money for closing costs, but long-term savings may be enormous for you.
To put my money where my mouth is: I am in the process of refinancing for the second time in 2020.
Any benefits for Sellers? Isn’t the market supposed to be bad in the Winter?
If you are thinking about selling your home, the market is still working strongly in your favor.
Newest data is showing that the market is slowing down a bit in terms of overall volume of closings. However, Buyer demand remains strong and it far outstrips the available supply. The interest rates are still propping up demand, and inventory has actually fallen, so you can still get top dollar for your home.