May Brings Another Dip in Mortgage Rates
Freddie Mac reported that the interest rates on a 15-year and 30-year fixed-rate fell the first week in May. This will be the third consecutive week that the mortgage rate for a 30-year stayed below 3%. The interest rate on a 30-year fixed dropped to 2.96% while the 15-year rate fell to 2.30%. The drop is a great chance for those who did not get a chance to lock in a rate when the rates hit a record low to go ahead now and take advantage.
“The combination of low and stable rates, coupled with an improving economy, is good for homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist. “It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.”
The housing market is still reeling from low rates and housing inventory. The strong demand coupled with the low inventory is driving home prices up.
“Real estate markets continue to see asking prices near record highs, as the favorable financing environment has motivated buyers to keep searching for homes, even amid tight inventory,” said George Ratiu, senior economist at Realtor.com.
Now is a great time to purchase a home with low rates. Rising inventory and low rates are especially pleasing right now for first-time homebuyers. If you are in the market be sure to hire a local sales agent to help you through the process.
