Finally some good news for the housing market! Mortgage rates went down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent!! According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price. I mean, that doesn’t mean as much for us here in the Bay Area, but it does help!
But will rates go back up? Probably. JVM Lending, a local mortgage broker with a terrific reputation in our area, presented some information at our office meeting today. This chart below shows that actual cost of waiting. Rates always fluctuate, but this chart shows what happens to the mortgage payment when you wait too long.
“But why would I want to buy when rates are this high?” Said one of our clients. According to JVM, they can just refinance when rates dip back down. Bam!!! Ok, so not everyone can qualify to refinance, but hey, this is definitely worth looking into. Buy now and refinance later!