Mortgage rates are near historic lows again. Today, conventional 30-year fixed mortgages are averaging only 3.73%. Conventional 15-year fixed mortgages are averaging 2.93%. It’s hard to imagine rates going much lower. And, it’s anybody’s guess how long they might stay this low. If you’ve been thinking you’d buy a house or refinance an existing mortgage anytime soon, now’s a good time.
The local housing market appears to be stronger now than it was a year ago. I’m seeing more houses selling, and sometimes for prices as much as 5% – 8% higher than comparables from six to nine months ago would support. See my accompanying blog post regarding the current market strengthening: larrygiammo.com/2015/04/20/volume-of-home-sales-up-14-percent.
Low mortgage rates are a significant enabler of the housing market’s current strengthening. The impact of low mortgage rates cannot be overemphasized. For example, a one percentage point difference in mortgage rates translates into a buyer being able to afford a mortgage that’s nearly 13% larger. That’s a big increase in buying power!
For anyone interested, I frequently refer to this NY Times page for their succinct summaries of current consumer interest rates: markets.on.nytimes.com/research/markets/rates/rates.asp.