Thanks to Brexit, It's Cheaper to Get a Mortgage

Have you been saving, waiting, and hoping to buy your first home or needing a bigger home for a few years? Have you been discouraged by the small inventory of homes, the pre-approval requirements for mortgages, and even the necessity of giving up on some of the things you’d hoped to get in a home? Are you worried about eating into your other savings to afford it?

Now might be your time to start looking again.

Mortgage Rates Drop

Since the U.K.’s decision to leave the European Union, the U.S. mortgage rates have been hovering at a very low number. Sean Becketti, one of Freddie Mac’s chief economists said, "This marks the ninth consecutive week that mortgage rates have been below 3.5 percent.”

Here are the current mortgage rates for week end 8/25 as report by Freddie Mac:

30-year fixed-rate mortgages:

  • Averaged 3.43 percent, with an average 0.6 point
  • A year ago, 30-year rates averaged 3.84 percent.

15-year fixed-rate mortgages:

  • Averaged 2.74 percent, with an average 0.5 point
  • Last year at this time, 15-year rates averaged 3.06 percent.

5-year hybrid adjustable-rate mortgages:

  • Averaged 2.75 percent, with an average 0.4 point
  • Increased from the prior week’s 2.74 percent average.
  • Last year at this time, 5-year ARMs averaged 2.90 percent.

The U.S. 10-year Treasury Note - a federal government security (an investment product) - serves as a benchmark for consumer loans. The United Kingdom’s vote sent it down to 1.45%, which is a four year low. It also inspired investors to sell off to the tune of a record $3 trillion dollars gone from the global stock market. According to CNN Money, some investors think this will encourage foreign investors to find a safe haven for their money in U.S. real estate.

Home Buyer Advantage

You may have been feeling the pinch because home prices in general have continued to rise about 5% each year even though most people aren’t getting a raise in their wages or incomes.

However, the market may be shifting with the start of the school year. Many families don’t like to buy a home during the school year or move in cold weather, and as the season begins to shift, houses sitting on the market a median of 65 days in May and June - real estate’s biggest season - will sit on the market for a median of 72 days.

This means that buyers will have an advantage: there will be more homes for sale on the market from now until January.

Your Chance to Buy Now

This may be the chance you’ve been waiting for. Is there a home you’ve been eyeing, hoping it won’t get snatched up before you can get everything in order? Have you had a problem finding what you’re looking for, always looking, but losing confidence you will find the right one? Are you saving for a home, but haven’t looked yet?

Now is your chance. Interest rates are low even though housing prices have risen. Fall means more homes on the market. Contact us today at the Jamey Kramer Group. We would be honored to help you find the home of your dreams.