Mortgage loan, Fixed-rate mortgage, Interest rate, Freddie Mac, Refinancing, Finance, Saving

Hey y’all Zack McDonald your real estate agent with real property. Associates and mortgage interest rates hit an all-time low again this week and we’re gonna talk about what that means for. You coming up so weekly mortgage rates hit an all-time low again here for the third time in. 2020 and we’re gonna go and we’re gonna go through this survey that Freddie Mac does every single week following the mortgage rates and then we’re. Gonna talk a little bit about the applications here and what it means for you now first off Freddie Mac has said here in their press release that mortgage rates have now hit the lowest.

Level in their surveys nearly 50-year history breaking the record for the. Third time in just a few months these unprecedented rates have certainly made an impact as purchased a man rebounded from a 35 percent year-over-year decline in mid April to. An 8 percent increase as of last week a remarkable turnaround given the sharp contraction in the economic activity additionally refinance.

Mortgage loan, Fixed-rate mortgage, Interest rate, Freddie Mac, Refinancing, Finance, SavingActivity remains elevated and low mortgage rates have been accompanied by a $70,000. Decline in the average loan size of refinance borrowers this year this means a broader base of borrowers are taking advantage of the record low rate environment which will benefit the economy. Now let’s look at the rates here really quick so they do this survey every week. Of mortgage rates across the country and the 30-year fixed-rate mortgage was three point one five percent and this data. Is as of 528 and it was this rate was purchased with 0.8%.

Mortgage loan, Fixed-rate mortgage, Interest rate, Freddie Mac, Refinancing, Finance, Saving Business NewsIn fees in points so you’d have to pay to get this rate in some places 15-year fixed-rate mortgage as of 528 on their survey. Two point six two percent with 0.7% in fees and then the five one arm was three point one three percent with point four points in fees so just. Interesting looking at this survey here rates the 30-year fixed rate which is down point eight four percent.

Mortgage loan, Fixed-rate mortgage, Interest rate, Freddie Mac, Refinancing, Finance, Saving NewsFrom the year before so last year the same time the 30-year fixed-rate mortgage was at three point nine nine. Percent on their survey so we’re seeing rates substantially lower than they were at the same time last. Year which were already good rates and again here now the new record in 2020 so there are multiple opportunities here that I see and I.

Want to share a few of those with you first opportunity is to refinance your mortgage. And lower your monthly payment so many people have already jumped on the refinance bandwagon this year as we’ve talked about two times already this year we’ve seen record. Low interest rates if you’re in that situation where maybe you still have a little bit higher interest rate you didn’t jump on it at. One of the earlier points this year there’s another opportunity here right now.

And it could go a little lower maybe but this would be the time where to at least get. An application and start thinking about it because if you get yourself in the queue you can lock your. Rate at the opportune time if you’re not in process it takes time to get yourself into the position to be able to lock and since rates fluctuate every single day. You know we could see rates jump to 3.5% tomorrow we don’t we don’t really know what’s going to happen on a daily basis but if you can get yourself set up for. Success and in line for locking your rate and you’d be able to capitalize and jump on one of these really low rates now again this could change even by the time this video.

Gets out rates could be up but right now as. Of the 28th of May we’ve got really low rates again so a great opportunity to. Refinance and save some money but again if you’re not planning to live in the house for at least a year it probably doesn’t make sense to refinance. And if you’re not going to be saving very much on that monthly payment it also probably doesn’t. Make sense because it does cost a little bit of money to go through that refinance process so again it would. Depend on your individual situation and that would be a great opportunity to speak with a loan officer and I can make that connection too so.

If you’re watching this and you don’t know who to talk to about mortgages I’m not the one to talk to about mortgages but I can connect you with some of the. Best here in the area so let me know in the comments or shoot me message and let me. Know if that’s something that you’re interested in now the other option here so the. First one was getting your refinance done and lowering your monthly payment the second. Option would be as if you’re thinking that you would move here in the. Near future with rates being at an all-time low it also means that you have increased purchasing power so you can essentially get a larger house or a.

Little bit more expensive house and have the same payment so if you’re somebody who’s been thinking about maybe buying another house but maybe that house you really wanted was outside. Of what your reach was with lower rates now your reach is a little bit farther and it’s not going to impact. Your payment at all the money’s cheap right now so it’s an opportunity to maybe buy that bigger house or during the Cova. 19 crisis if you’ve been working from home maybe you’ve reprioritized what’s important and you want to make a. Shift this could be a great opportunity to buy something that is bigger and or just different and more suitable for what.

Your needs are and then also be able to sell that other. Property so in this situation be able to lock in a lower rate on that new house reach a little bit further for the same monthly payment but then. You can take that other property and sell it and thankfully right now homes are still selling relatively quickly and the big reason that that’s the case. Is because inventory is so low and you also have these really low interest rates so people are still. Out there buying and selling and I’m seeing that even as if now I have a client that’s got an offer in.

So lots of activity multiple offers on a lot of homes not every home but the good ones are going really quickly still opportunity number three would be to purchase your first. Home and actually get yourself into the market for the first time now with record low interest rates the same thing applies to opportunity number two you have. A lot of additional purchasing power right now than you did last year we’re talking almost an entire percentage point down on average from the rates that we were looking at last year and in.

2018 we were seeing rates that were another percentage point above that so last year it was the same. Message and we’re like down an entire percentage point this is awesome and now we’re having. That same conversation so imagine if you had a five and a half percent interest rate instead. Of a 3% interest rate the amount of additional money it takes every month to make that payment is substantially larger so with the lower interest rates as a first-time homebuyer you have the. Opportunity to jump into the market and get a house with a lot lower payment now some would say well what happens if. The market goes down and I don’t have a crystal ball and I don’t want to be the one.

On the camera saying oh the housing markets never gonna go down because it does the housing market does not just go in a straight upward trajectory unfortunately it. Does do that and it did do that for a. While here in Seattle but we’ve seen some bumps in Seattle recently 20:18 saw a pretty massive that massive dip and we’ve seen a steady increase in the market and in my last market.

Update we did see prices pretty much returning to where they were at the top of the market in 2018 so. We’re kind of back to that same spot that we were a couple years back but there are some ups and downs in the market so it makes sense that.

If you’re going to buy a place you want to live in that place for a little while the. Good news is that the housing market does trend in an upward direction in the long run historically that’s what we’ve seen and again past performance is. Not necessarily indicative of future performance but if we look at a really long time horizon chances are you’re gonna be in.

A good investment so for example if you bought a house that was $750,000 in Seattle which is right around the median maybe a little bit below that you’re going to. Be getting in right now according to the survey with about a three point one five to three point two.

Five rate right depending on your situation and each person’s situation is different so these rates vary depending on your down payment amount your credit history and your job history income assets things. Like that so there are some variables for each person. Situation but let’s just suppose you can get in with that kind of a rate if mortgage rates did go up which.

A lot of predicting that this isn’t going to be able to go. On forever if rates do go up after the election maybe or something like that now you maybe you’re looking at a 5% interest rate again that same amount of money that you’re able.

To borrow today’s right today’s money is worth more before inflation. Than tomorrows money is going to be so if you’re able to get a house maybe it does go down in value a little bit before it jumps back. Up if you jump in now with the lower interest rate you’re actually gonna be. Coming out ahead then where you would be looking at it down. The road so maybe that $750,000 house in a year or two is worth seven hundred. Twenty-five or seven hundred thousand if your interest rates at five percent you’re gonna be paying a lot more money every month to have that seven.

Hundred thousand dollar house and you’d be paying to have the seven hundred fifty thousand dollar house and as long as you write it out a. Little bit the worst recession we had in recent memory.

Lasted four years and then home prices here in Seattle were actually above where they were at before if you can just write it out you’re now in a really good situation and you. Have a house that’s back at where it was in value but you also have that lower monthly payment haven’t spent as much money to have that house so I know it’s a. Reverse way to look at it and again we don’t know maybe the market. Does keep going up and you never even bump into that situation in the near future but it’s possible that the market goes down here and. You face that situation so I wanted to just at least put that into your mind so you can think about that and consider that for yourself as well all right so we talked about. Three different benefits of the low interest rates right now the first one was that opportunity to refinance lock in a lower rate the second opportunity we talked about.

Was that opportunity to maybe buy a new house and lock in a really good rate and with increased purchasing power and then. Sell the other house and then that third option was to get into the market in the first. Place maybe for the first time so if you want to talk a little bit more about your individual situation and how this might apply to you I’d love to be. A resource for you feel free to comment below with questions or reach out to me directly I’m happy to. Be a resource for you.