Comparing July’s conforming mortgage rates to today’s average rates, there’s a 1.5 percent difference in favor of homeowners.
Rate drops like that make big differences in a household budget. Look at these before-and-after payments, based on rates from the chart:
$150,000 mortgage ($144 savings/month)
$250,000 mortgage ($240 savings/month)
$350,000 mortgage ($335 savings/month)
Of course, the other side of the story is that while mortgage rates fell through late-2008, the mandatory lender fees that accompanied them rose. That lessened some of the benefits of getting lower rates, but certainly not all of them.
According to recent housing data, buyers are back writing contracts and listed homes are selling quickly. Considering how mortgage rates have led monthly payments lower, maybe it shouldn’t be much of a surprise.
We are seeing very good activity currently here in the Knoxville market. Homes that have been on the market are now starting to see offers and getting sold.
So if you have been thinking about getting in the market to buy NOW IS THE TIME!!!
Call me for a time to talk about your buying needs Rick Smenner 865-696-9002 or [email protected]
(Image courtesy: The Wall Street Journal)