Mortgage interest rates fell below 3% yesterday for the first time ever according to Freddie Mac. The 15-year fixed mortgage rate fell to 2.48% and the 30-year fixed rate fell to 2.98%.
Home purchases and refinance continue to be strong while the economy tries to make sense of the ups and downs caused by coronavirus pandemic. On the downside, rising coronavirus cases in many states demonstrate how hard the virus is to contain and the possible consequences of more job losses. But on the upside, news of a possible vaccine is giving us hope of a new normal where health concerns are not dominating our decisions according to Danielle Hale, chief economist for Realtor.com. She went on to say that financing the typical home today is $125 or 80 basis points less per month versus the same-priced home at last year’s price.
These low rates are pushing up demand while available homes are shrinking. In many U.S. markets we need more sellers to keep up with demand. If you’ve thought about moving up or refinancing, this may be your time. Contact an Intercap loan officer to discuss your options and rates.