Considering purchasing a new home this year? Now is an excellent time to do so! Interest rates have continued to stay relatively low into the second quarter of 2020. At the start of the year, the 30 year-fixed-rate-mortgage was at 3.93%. While that rate has fluctuated over the last few months, it has continued to remain lower than in previous years. According to a recent Bankrate article, the 30 year-fixed-rate mortgages dropped from 3.88% to 3.86%, as of June 3rd.
Zillow Economist, Matthew Speakman notes, “Mortgage rates rose just slightly on the week, noticeably in the last couple days as key economic reports exceeded consensus expectations. After a lingering disconnect, Treasury yields and mortgage rates have recently rekindled their relationship and resumed moving in tandem, thanks in part to enduring stability in the broader financial markets. As a result, after Treasury yields rose in recent days in response to some favorable reports on the labor market, service sector and factory orders, mortgage rates did the same. As reports continue to emerge that show the economy may be beginning a modest recovery, suddenly there appears to be upward pressure on bond yields, and thus mortgage rates. To be sure, rates remain near their lowest levels on record, but after weeks of wondering why rates weren’t even lower, the paradigm appears to be shifting.”
With rates continuing to stay at an all-time low, it’s a great time to consider purchasing a new home! As of June 3rd, homebuyers that qualify for a 30-year fixed-rate will pay approximately $447.37 each month for every $100,000 borrowed.
In comparison, home buyers would pay roughly $537 a month for every $100,000 borrowed at a mortgage interest rate of 5%. That’s just shy of $90 in savings each month! Though that amount of money doesn’t seem like much on its own, it adds up over time. In fact, that’s an additional $1,075.56 per year.
The savings from today’s low-interest rates give home buyers more buying power, which helps them get more home for their money. Use it toward upgraded selections like floor coverings or an extra garage stall. You could even get a finished basement for the same monthly payment you’d have purchased a home with a 5% interest rate!
Why wait to purchase the home of your dreams? Today’s historically low mortgage interest rates make purchasing a home much more affordable. Regency Homes has many wonderful move-in ready homes to choose from throughout the greater Omaha area. Get in touch today to learn more!
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