Homebuyers are typically faced with the contemplation as to whether to buy now or wait until a better time in the market. Rates are at a historic place at the moment and we may be entering a new chapter for interested homebuyers.
Rates are at a very interesting place at the moment. Rewind to a year ago and experts would have estimated that rates would be in 5 percent. But where are rates now? More than a whole percentage number lower in the 3 percent.
A couple of factors play into this unexpected outcome. President Trump has been putting the pressure on the Fed to keep rates low. And in August the Fed lowered rates, this is the first time since 2008 that the Fed has reduced rates. And the Fed may lower rates again after the next meeting that is held on September 18. Trade wars can also cause rates to lower. The trade wars between the U.S. and China, two countries with the strongest economies in the world, can decelerate economies and lower rates.
Last but not least, you’ve probably heard something about a yield curve. A yield curve is a curve on a graph that is a good predictor of economic behavior. Currently the curve is inverted, which is an indicator of a recession and consequently low rates and low rates to come.
It’s difficult to know where exactly the market will go, however real estate professionals feel confident that rates will stay low for the rest of 2019. Although there could be repercussions from such low rates. Typically, low rates have come with a rise in home prices.
We’ll have to wait and see if the Fed lowers rates even more later this month.
The interest rate on your home loan is a fee for borrowing money from a mortgage lender. Your interest rate is a percentage of the amount that you are borrowing to finance your home and is paid to your lender monthly throughout the life of the loan. The amount that you are paying in interest can quickly add up. Therefore, the current low rates can be extremely beneficial if you are planning on purchasing a home between now and the end of the year because you could be keeping hundreds of dollars in your pocket each month. Low mortgage rates can also benefit those who already own a home and are interested in refinancing their current home loan. Refinancing not only could help you get a lower rate, but it could also eliminate mortgage insurance if you’re paying it, which could save you even more money each month. Below is a table with a couple of loan scenarios comparing monthly mortgage payments with interest rates at what they are around today and what experts estimated they would be around at this time of year.
As you can see, between the different interest rates in the loan scenarios you would save $123 each month and thousands along the life of the loan. Now could be a good time to take advantage of these costs savings and make the leap towards homeownership.
If you’re in the market for a home in Colorado, Idaho, Washington, or Oregon or thinking about refinancing, now may be better than ever. With rates as low as they are, you may be able to save hundreds of dollars each month. Contact Sammamish Mortgage to see what rates you may qualify for.
Brick houses have been a cornerstone of architecture for centuries, celebrated for their durability, aesthetic versatility, and timeless appeal. In modern design, architects continue to explore innovative ways to incorporate brick into residential spaces, blending traditional materials with contemporary needs. While the design of each brick house is unique, there are several ways to incorporate […]
One of the significant decor elements for the living room is the sofa. Sofa designs for living room radiates the feeling of comfort, the dweller’s personality, and their personal touch to the design. From traditional Indian settees to modern-day lounges, with plenty of choices available, it can be puzzling what to choose. With this curation […]
Plants for home garden, apart from making houses look more beautiful and inviting, add health and calmness to them. Having any kind of indoor plant, a herb plant or a flowering plant adds some value to your decor and the quality of the space. Always choose plants that will flourish in your space and climate. […]
Flooring design is an important element for the overall aesthetics and function of your home. Whether you prefer the classic style of marble, the tradition and warmth of wooden flooring, or the practical use of tiles, the right flooring can revive your space. With shifts in design trends, Indian homes are starting to incorporate a […]
When designing a home, interior decor ideas to craft spaces become a necessity. From small plant vases to big furniture pieces everything comes in handy for making space speak one’s personality. But with an ample amount of products available in the market, it becomes daunting at times what to choose. With this blog, we cover […]
A bedroom is more than just a place to sleep, it’s a personal retreat that reflects your style. Modern bedroom designs are the best mix of functionality, comfort, as well as aesthetics that transform an ordinary space into an elegant yet inviting one. Whether you like minimalistic design, industrial design, warm wood, and linen in […]
The Indian home decor market has undergone a remarkable transformation, driven by rapid urbanization, rising disposable incomes, and a growing preference for personalized, high-quality interiors. No longer are homeowners settling for mass-produced decor—there is a clear shift towards customization, exclusivity, and sustainable choices. The demand for bespoke home decor products, especially wallpapers, is skyrocketing as […]
Have you ever walked into a home and instantly felt a sense of peace, like everything just “flows” perfectly? Or, on the flip side, stepped into a space that felt heavy, cluttered, or just… off? Believe it or not, the way a home is designed and decorated affects not just its aesthetics but also the […]
Tiny house designs are very exciting and intimidating in themselves. Moreover, they come with their benefits and challenges as well. To know and understand tiny house designs, one must have enough knowledge about the challenges one can face. It can be individual or separate entities and also can be shared living spaces. The following are […]
A well-designed false ceiling design for hall can create the entire mood of your interiors by adding elegance and character to the space. From simple gypsum to highly designed wooden patterns, these ceiling designs not only beautify the whole ambience but also improve sound quality distribution, thermal insulation, and lighting distribution within the room. In […]