On Friday, March 13, 2020, the average rate on a 30-year fixed-rate mortgage went up six basis points to 3.767%, the average rate on the 15-year fixed-rate mortgage rose two basis points to 3.201% and the average rate on the 5/1 ARM fell one basis point to 3.342%, according to a NerdWallet survey of mortgage rates published daily by national lenders. A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR. The 30-year fixed-rate mortgage is 39 basis points higher than a week ago.
Reading the statement approve makes you wonder, what does this mean? While rates may have increased since the end of February, they are still at a stellar percentage. These rates are at an all time low compared to the past three years. You may ask yourself is it a good time to refinance if you have purchased your home in the past three years? Yes, it is a great time to refinance depending upon your credit score. Is it a great time to purchase a home? Yes, it is a wonderful time to purchase a home due to the stellar rates. Lenders are experiencing a longer than usual processing time due to the rate changes. If you are having a hard time getting a response, be patient, and follow up. If you are not able to work due to the shut downs of some businesses and schools, let your lender know and ask how to lock in that rate when it comes time for you to move forward. Don’t forget to lock in that rate!
While we watch the federal response to the COVID-19 outbreak, rates have plummeted. For consumers, lower rates do mean cheaper loans, which can impact your mortgage, home equity loan, credit card, student loan tab and car payment. On the flip side, consumers likely will earn less interest on their savings accounts, and in some cases, lose buying power over time. Home rates may not be plummeting, they are still at an all time low compared to rates within the last three years. People want to know why. Due to the fact there are not enough homes on the housing market to fulfill the demand.
The above paragraph brings me to the portion of this blog to share with my sellers. Home loan rates are lower, the market is doing wonderful by having multiple offers on homes within 24 to 48 hours of having them publicly listed, and if you have a home you want to sell now is them time to consider it. We at Pioneer Realty want to help you with that process. We work around the clock from start to beyond the finished process, and are always available (communication is not a character flaw of Pioneer Realty). Want to sell your home with mass innovative marketing within our area look no further. Pioneer Realty will come out to your home, tell you what to leave, what to change, and what that means for your listing price and potential future offers. We have relationships with qualified contractors at reasonable prices who can help get your home market/show ready if you are need of a helping hand. Our marketing stretches out to multiple social media accounts, over eleven hundred home sales sites, and a video of your home will be created to keep unnecessary traffic within your home to minimum. Call us today for your FREE CMA (comparative market analysis)!