Currently, a prospective buyer who takes out a 30-year mortgage loan can expect to pay approximately $50 more per month (based on purchasing a $170,000 home with a 20 percent down payment) compared to October, when rates stood at 4.2 percent.
Despite the jump in rates, relatively low home prices indicate that affordability will continue to remain high for some time.
For more information on real estate market trends, contact us today!
According to a recent Freddie Mac survey, U.S. 30-year fixed-rate mortgages fell to 4.27 percent for the week ending October 7, down from 4.32 percent the week prior. This is the lowest rate ever recorded since Freddie Mac began surveying in 1971.
Meanwhile, loan demands have seen an increase over the past few weeks according to data from the Mortgage Bankers Association. Demand is currently at its highest level since May.
Now is a great time to take advantage of these record low rates! Contact us today for more information!
Although much has already been made of the extraordinarily low interest rates currently available to both current and potential homeowners, much less has been mentioned about just how impactful these rates can be. Carla Hill, Managing Editor for the Realty Times, recently posted an article detailing the differences between obtaining a mortgage in 1980 and obtaining a mortgage today.
30 years ago, in 1980, when many first-time home buyers parents were making home purchases, Freddie Mac reports that the 30-year fixed rate mortgage hit a staggering 16.32 percent. Let’s compare that in relation to today’s interest rate, averaging around 4.5 percent.
In the most basic terms, a 30-year fixed-rate mortgage for $100,000 at 16.32 percent, will cost you around $1,450 a month.
For the same mortgage at a 4.5 percent rate, you’ll be paying $580 a month.
– Carla Hill
For those who may have been sitting on the fence, now could be a great time to make a home purchase. Keller Williams Lafayette can help!
A CNN Real Estate report reveals Indiana’s foreclosure rate to be 9.22. The number is relatively high when compared to the rest of the nation, but is about average for the Midwest. The country’s highest foreclosure rate can be found in Florida at 20.61.
Click the link below for the full map and for additional information (Note: You will have to click on “Foreclosures” at the top of the map to access the foreclosure information as “Unemployment” is selected by default).