Low Mortgage Interest Rates are Good for Sellers Too!

Home Sellers may be reluctant to put their property on the market right now, and that’s understandable maybe, but is it a smart financial move?

The current lack of inventory in the Real Estate market, coupled with low mortgage interest rates, and the very simple fact that ‘everyone has to live somewhere’, have created the perfect storm for home sellers. Property values have been on a steady rise for quite some time, and Home Buyers are in fierce competition for available listings, accurately priced ones of course (yes even in a strong market appraisals still count). As a Home Seller I might interpret market conditions for Fall of 2020 as Real Estate Nirvana.

As a Home Buyer, I would commit to persistence and patience. These are mortgage rates you don’t want to miss but the market is a challenging one. A street-wise, agent with lots of experience and an aggressive plan is your guarantee of success!

Freddie Mac: Mortgage Rates Continue to Trend Down

Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.80 percent, the lowest rate in the survey’s history, which dates back to 1971.

“Mortgage rates remain very low, providing homeowners who have not already taken advantage of this environment ample opportunity to do so,” said Sam Khater, Freddie Mac’s chief economist. “Mortgage rates today are on average more than a full percentage point lower than rates over the last five years. This means that most low- and moderate-income borrowers who purchased during the last few years stand to benefit by exploring refinancing to lower their monthly payment.”

The 30-year fixed-rate mortgage averaged 2.80 percent with an average 0.6 point for the week ending Oct. 22, 2020, down from last week when it averaged 2.81 percent. A year ago at this time, the 30-year FRM averaged 3.75 percent.
The 15-year fixed-rate mortgage averaged 2.33 percent with an average 0.6 point, down from last week when it averaged 2.35 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.87 percent with an average 0.3 point, down from last week when it averaged 2.90 percent. A year ago at this time, the 5-year ARM averaged 3.40 percent.