• Homebuyers May Benefit from Unexpected Drop in Interest Rates •
Last week, Diana Olick at CNBC reported that a new plunge in mortgage rates could save borrowers thousands of dollars. We’re excited about what that means for home buyers and sellers!
A few key takeaways:
- The average rate on the popular 30-year fixed mortgage was at 3.75% last Friday. By Thursday, it had dropped to 3.62%, according to Mortgage News Daily.
- Rates are now about 1.25 percentage point lower than they were at this time last year.
- For the average borrower taking out a $300,000 mortgage, that is a savings of about $225 on the monthly payment, or $2,700 per year.
While home prices in California continue to increase and are expected to rise 2.5% through 2020, the California Association of REALTORS® is forecasting low mortgage rates will offset the rising cost of homes.
If you’re shopping for a mortgage or thinking about refinancing, get in touch with our Reali Loans team. Business Insider rated Reali Loans a top 2019 nonbank lender!