Rate Meaning

Mortgage interest rates have hit another record low this week.

Mortgage applications for purchases just hit an 11-year high.pale blue house with siding on a large lot with traditional windows and shutters in a subdivision in the suburbs on a bright sunny blue sky day

Rates are at a level that many people could never have imagined.

Here’s something that is surprising to many people…

Rates are 1.5% lower than they were just two years ago.

Here’s what that means for buyers…

Pretend someone is looking at a $500,000 home and they will have a 20% down payment.

The difference in monthly payment is $320 between two years ago and today.

Obviously that is a significant amount of money.

Imagine what a person could do with $320 per month.

The fact that rates are at record lows is one of many reasons that the market is so strong right now and prices continue to appreciate at healthy levels.

 

Posted on June 19, 2020 at 2:10 pm
Kelly Swift | Category: Economics 101, Mortgage | Tagged , , , , ,