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Good news! Mortgage rates just hit a 6-month low. We’re excited to share this. Especially for those of you who have been thinking about buying or who want to refinance. For you, this is actually a big OPPORTUNITY. Lower rates are going to bring even more buyers to the market, increasing demand for the already low inventory. REMEMBER that demand can only push prices up, which means waiting will cost you money.
Here are the important Mortgage Rate Updates:
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30-Year Mortgage Rates Dip Below 7%: The average long-term U.S. mortgage rate has dropped below 7%, hitting the lowest level seen since early August. Specifically, the rate on a 30-year mortgage decreased to 6.95% from 7.03% last week, according to Freddie Mac’s report.
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15-Year Fixed-Rate Mortgage Trends: Although 15-year fixed-rate mortgage rates inched up slightly this week, rising to 6.38% from 6.29% last week, it’s important to note the broader context. A year ago, this rate stood significantly lower at 5.54%.
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Consistent Decline in Rates: This is the seventh consecutive week of declining mortgage rates. Since late October, rates have steadily decreased from their peak at 7.79%, the highest level observed since late 2000.
What does this mean for you as a buyer?:
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Increased Affordability: Lower mortgage rates increase affordability for prospective homebuyers, potentially enabling them to afford more in a competitive housing market.
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Refinancing Opportunities: Homeowners aiming to refinance their loans might benefit from these reduced rates, potentially lowering monthly payments or shortening the loan term.
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Market Stimulus: The decline in borrowing costs is likely to stimulate housing market activity, putting upward pressure on home values.
Timing Is Crucial:
Given this decline in mortgage rates, the timing appears optimal for those considering entering the housing market or looking to refinance. If you’ve been considering buying, our recommendation is to act fast. Waiting until the post-holiday market with lower rates will likely only put you in a much more difficult and competitive situation when making offers on properties.