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.
Imagine a home that breathes with the breeze, where sunlight filters through lush foliage, and the vibrant hues of nature are an extension of your living space. Tropical houses are architectural marvels; a profound dialogue between human habitation and the natural world, born from centuries of adapting to warm, humid climates. Far from rigid structures, […]
“Dream kitchens don’t just happen — they’re designed with care and style.” Walking into the same old and outdated kitchen in your home? It’s time to change the design and get that wow factor, according to your needs and wise design choices. Seems like a challenging task, right? But let’s be clear here, the kitchen […]
Currently, homeowners within the UK are striving to maximise the available space in their homes within an ever-present constraint – the size of their homes continues to shrink. As RIBA states, the average new build home in the UK is a meager 76 square meters. Thoughtful custom furniture choices and arrangements come into play. One […]
Neo-Futuristic Architecture is an avant-garde movement that pushes the boundaries of design, technology, and sustainability. In India, this architectural style is gaining momentum, reflecting the nation’s aspirations towards innovation and modernity. This is the world of Neo-Futuristic Architecture, a dynamic and forward-thinking style that embraces innovation, technology, and sustainability to envision the cities of tomorrow. […]
Kerala style homes have courtyards surrounded by rooms on each side. Traditional Kerala-style homes have a central courtyard known as Nadumuttam surrounded by rooms. These homes promote natural light and ventilation according to the region’s climate. These homes, due to the feature of courtyards as their core spaces, offer beautiful opportunities for social gatherings. This […]
When it comes to enhancing the kitchen window over the sink, various design ideas are possible to decorate Indian homes. From rooted in tradition to Western-style modular kitchens offer both functionality and attractive aesthetics. Apart from the sleek profile and raised breakfast counter, the kitchen window over sink is another spot to add appeal and […]
Indian homes place equal importance on pooja room door designs as they do on main door designs. With diverse and unique ethnic backgrounds, every family strives to reflect their personalities and identities in their designs. These identities can encompass religious or spiritual interests, local contexts, or other personal elements. This series of blogs, featuring 50 […]
The integration of screening evergreen trees serves as an artful blend of practicality and natural beauty. These screening evergreen trees, with their lush foliage and diverse benefits, play a crucial role in enhancing privacy. It also blocks unwanted views, and contributes to the overall well-being of homeowners. From the majestic Jamun trees to the versatile […]
Gate Design is an important feature of any home. Numerous scopes for experimentation open up when delving into the design possibilities. Materials like wood and black steel are popular options in Indian homes. At the same time, designers also experiment with a combination of materials that suits their aesthetic. Buying mass-produced Sydney automated gates has […]
Hyderabad is a city that boasts a rich and diverse architectural heritage that has been shaped by its history and cultural influences. The city has been ruled by various dynasties, including the Qutb Shahis, the Mughals, and the Nizams, who have all left their mark on its architecture and influenced young architects in Hyderabad. The […]