Earlier this month, we saw mortgage rates drop to a new record low … even lower than the seven other record lows hit already in 2020.
Freddie Mac reported that the average interest rate on a 30-year fixed-rate mortgage recently fell to 2.88%. If you were wondering, that’s the lowest they’ve seen in their 50-year history of keeping track.
The average rate for a 15-year fixed-rate mortgage fell to 2.44%.
This creates a big opportunity if you’re looking to buy a home right now. These low rates give home buyers more purchasing power … letting you afford more house for your monthly payment.
And Freddie Mac’s chief economist Sam Khater expects rates to stay low for a while.
“We expect rates to stay low and continue to propel the purchase market forward,” Khater said in a CNN article. “However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”
This lack of inventory means there aren’t a lot of homes for sale on the market. In fact, there are more buyers looking for homes than there are homes for sale.
And it’s this short supply of homes for sale that is “leading to a frenzied environment of multiple bids, price escalation clauses and inspection waivers,” George Tariu, senior economist with Realtor.com told MarketWatch.
All of these conditions make it more important than ever to have a really good real estate agent on your side to help you quickly find the right home for you and then help you write the best offer to get it under contract.
Let the Foxen Realty agents help you. Get started by calling us at 559-490-0207 today.