If you've been thinking about home ownership, or contemplating a move, you owe it to yourself to seriously consider the fantastic opportunity right now.
Mortgage rates have been steadily falling since their multi-year peak of last November, when a 30 year fixed loan averaged 4.87%.
In recent weeks, average 30 year fixed rates have dipped below the psychological barrier of 4%, leading to a lot of extra market activity as buyers look to secure an ultra-low rate.
This really is a very rare chance. If we take a look at Freddie Mac's table of average 30 year fixed rates since 1971, going back in five year increments, we can see how well today's rates compare:
May 2014 - 4.19%
May 2009 - 4.86%
May 2004 - 6.27%
May 1999 - 7.15%
May 1994 - 8.60%
May 1989 - 10.77%
May 1984 - 13.94%
May 1979 - 10.69%
May 1974 - 8.97%
In fact, the annual rate for 30 year fixed has averaged 4% or below on just five occasions in the past 48 years! The highest rate in that time was an eye-watering 18.45% in October 1981...
So, even though last year's high in November of 4.87% was obviously unwelcome, even at that point we were still enjoying a comparatively favorable percentage, from an historic perspective.
Of course there are no guarantees that the recent falls will continue. Right now rates have moved sideways and, even though some experts are predicting further drops, there can never be certainty, especially as mortgage rates are subject to the volatilities of national and international financial markets and politics.
Sellers can also reap significant benefits from listing at this time of heightened positive buyer sentiment. Very simply, buyers are keen to purchase before anything changes.
We'd be happy to help you evaluate the current highly favorable situation from your individual perspective, including connecting you with the best mortgage professionals in the area, so please reach out to us.