Historic Low Mortgage Rates Week 2 Of July 2016

Dated: 07/18/2016

Views: 190

Johnson City Homes

Last week, mortgage agency Freddie Mac announced 30-year fixed rates were the lowest reported since the agency began gathering data over 45 years ago. Rates averaged just 3.42% the second week of July, up just one basis point (0.01%) from the week prior. The group had predicted 30-year mortgage rates at 3.9 percent by the end of 2016, rising to 4.5 percent in 2017. Now, it posts that rates will stay solidly in the mid-3s this year, and won't budge above four percent before 2017 draws to a close. This new low is a marked detour from Freddie Mac's stance one year ago when the mortgage agency said rates would be near 5% by the end of 2016.

These low rates are predicted to cause a flurry of buying activity, with renters and millennials taking advantage of today's rates and the many low or no down payment loan programs available. Buying could now be cheaper than renting, and who doesn't want to pay into their own wealth? 

Freddie Mac offers possible insight that with trend, there is possibility that rates may go even lower, and bottom out in the 2's. The mortgage agency notes that mortgage rates don't play by the rules. They can rise just as unexpectedly as they dropped. For this reason, home buyers shouldn't grow smug, assuming permanently low rates. In 2013, mortgage rates rose more than 100 basis points (1.0%)in eight weeks. This was after a year of rates in the mid-3s. The increase meant homeowners and buyers would pay $140 per month on a mortgage amount of $250,000.

Curious to know if right now is the time to buy? Or, do you have a home to sell and want that for sale sign to fly out of the yard with the next happy buyer? Call us! We'd love opportunity to sit down with you and talk about possibilities, in both scenarios. Our office number is(423) 433-6517or come by for an in-person visit at our office inside Keller Williams Realty, 1033 Hamilton Place in Johnson City. 
You can also see the most current listings for the Tri-Cities here: Homes for Sale in Tri-Cities TN

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Wes Shields

Wes Shields, Team Owner and Listing Agent for The Shields Team at Keller Williams Realty of Johnson City Tennessee, has a long and very impressive list of accomplishments in his 10+ years in the real ....

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