The average 30-year mortgage rate fell to 4.04% last week, down from what had been highs for the year of 2015. These falling rates create a huge incentive for prospective buyers to buy real estate and to buy it now, taking advantage of such low rates.
The well–known mortgage loan company Freddie Mac said last Thursday that the average rate on a 30-year fixed-rate mortgage declined to 4.04 percent from 4.09 percent a week earlier. The rate on 15-year fixed-rate mortgages also slipped down to 3.21 percent from 3.25 percent.
According to the Florida Realtors, “To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.”
Low mortgage rates mean more excited buyers, and evidence lately has proven this. According to Florida Realtors, “Data issued Wednesday by the National Association of Realtors showed that Americans bought homes in June at the fastest rate in more than eight years, pushing prices to record highs as buyer demand has eclipsed the availability of houses on the market.”
Due to such a huge surge in demand and supply of homes that is still catching up, median home prices have been found to be rising. According to the realtors, median home price has climbed 6.5% over the last twelve months.
Clearly, the nation has noticed that now is the time to purchase a piece of real estate. There is no sense in waiting as the all time low mortgage rates are right now, and home prices are only going to rise.