This past Friday marked the lowest the 10 year treasury yield has been in 60 years. Mortgage interest rates follow the 10 year treasury yield which means interest rates haven't been this low since post world war 2.
For potential home buyers, record low interest rates means you can buy more house for the same payment.
For example, the principal and interest payment on a $200,000, 30 year fixed mortgage with a 4% interest rate vs a 6% interest rate is $954 vs $1199. Thats a savings of nearly $250 per month or $90,000 over the life of the loan.
If your on the fence waiting for the bottom of the market now is the time to jump in. With prices beginning to trend up, inventory shrinking, and super low rates, there has never been a better time to buy then now.
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