In early 2020, concerns over the COVID-19 pandemic sent the global economy into turmoil. The Federal Reserve responded by slashing interest rates, which in turn ushered in an era of all-time low mortgage rates. Now, we’re consistently seeing new record lows week after week. Here’s what it means for you.
What Do All-Time Low Mortgage Rates Mean for You?
Over the past several weeks, Freddie Mac has reported some of the lowest interest rates in their history—since 1971. In March, interest rates hit their first record low, but in April, the record was broken again. Now, we’re seeing rates lower than ever before—at just 3.03%.
This is huge for home buyers
All-time low mortgage rates are a big deal for buyers. Low interest rates mean big savings. They mean being able to buy more home for the same amount of money. They might even mean saving tens of thousands of dollars over the duration of your loan.
Low interest rates drive buyer demand
Spurred by these low interest rates, buyers flocked to the market in early summer. In fact, Realtor.com® reported an all-time traffic high of 86 million users in June 2020, breaking the previous record of May 2020. The site also saw a daily high of 7 million users on June 25.
Low interest rates save thousands
This surge of buyer interest isn’t surprising; low interest rates yield big savings. Looking back at interest rates over the years, today’s low rates make a huge difference. Consider a $300,000 loan taken out in the 80s, when the average interest rate was 12.7%. Your monthly mortgage payment would have been $3,248. Today, that same payment at a 3.03% interest loan would be just $1,270!
Low rates are good for sellers, too
Low interest rates are obviously very appealing to buyers. But they’re actually really good news for sellers, too. Low rates are driving buyers. Buyer demand drives the market, holding prices steady. Sellers who list now will find a lot of eager buyers ready to make a move.
Now Is a Good Time to Make a Move
Whether you’re buying or selling, these all-time low mortgage rates are great news for you! If you’re thinking about making a move in the Triangle area, Linda Craft & Team would love to help! Contact us today at 919-235-0007 to learn more about how we can put our 350+ years of combined experience to work for you.