Mortgage Rates Drop one full percentage point in 2019, and Still Headed Down
I challenge you to find a single pundit who predicted in 2018 that we would have falling interest rates this year. But truth is often stranger than fiction. Today we have rates that are, on average, one point lower than they were just seven months ago at 3.85 vs 5.05. To make matters even more interesting, the market currently believes that the Federal Reserve is going to cut rates once or twice before the end of 2019 or early 2020. We could be on our way to 3.5%, 30-year fixed rates.
How might this effect you and your plans:
1. If you are planning to buy a home, this may be a really good time. We have just found out how inexact the science can be when it comes to predicting future rates. Many are now predicting that rates will stay low for quite some time, but it doesn’t take much to turn that corner again.
2. If you are planning to sell your home or other residential property, the buyers have more buying power, by a lot. You are much more likely to have more traffic, and your traffic will qualify for more home than they would have six months ago. This means you are likely to get more for your home.
3. If you bought a home between January of 2018 and March of 2019, you may be able to refinance that purchase and save. Generally, if you can shave even ½%, you can benefit from refinancing your loan.
4. If you have current debt from credit cards, cars, student loans, Hero loans, or other debt with an interest rate above 7%, it may be to your benefit to consolidate your debt in a refinance of your entire loan, rather than using a HELOC. This will be especially true if your current mortgage interest rate is above 4.25 and you have outstanding debts of $25,000 or more.
5. If you are over 62, you may want to consider a reverse mortgage on your current residence and eliminate future mortgage payments. You might also consider a reverse mortgage for the purchase of a smaller retirement home, also with no future mortgage payments.
Call Whit Prouty if you are ready to buy or sell a home. He will help you find the best possible deal, and he can even help you get a great mortgage through his many contacts in the industry. Call Whit today at 310-777-6302