By most metrics, interest rates were expected to rise over the course of 2016, due to changes in the housing market and policy changes on the part of the Federal Reserve. With that in mind, a lot of homeowners are sure to be wondering if they missed their chance on securing a primo interest rate.
Well, we've got some interesting news: Interest rates have actually FALLEN over the past several months.
While indicators reported by Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors once suggested that rates would climb well above four percent this year (they certainly didn't foresee Brexit!), we are seeing rates remain low, keeping on track with 2015's low rates.
As of the time of this writing, the average national rate for a 30-year fixed mortgage is 3.40%, according to MarketWatch, a far cry from the 4.4 to 4.6% originally predicted for this year.
So here's the long and short of it: Rates today are still at amazing, near-record lows. For comparison, take a look at this chart from Keeping Current Matters:
What this tells us is that, even if rates somehow do reach the 4.6% projected by the fourth quarter of 2016, that’s still nearly half of the rate that homebuyers were paying in the 1970s, and just more than one-third of the rate in the 1980s!
What's the Takeaway?
Interest rates continue to sit near all-time lows, and if they rise slightly, they will still be significantly lower than when your parents or grandparents bought their homes. They may even be lower than when you bought your first home a decade ago!
With these long-term trends considered, this is a great time to look into refinancing your current mortgage, or start the home buying process. When you’re ready to start the search, Real Group is here to help! We can help you find your dream home in the Chicago area, and even set you up with the right mortgage broker when the time comes.
Ready to start looking through our listings? Have any more questions about what mortgage rates mean for you? Don’t hesitate to drop Real Group a line!
