Good news for would-be home buyers! Home loan rates have hit their lowest point since the 4th quarter of 2016. Of course, lower rates on home loans means that purchasers can afford “more” house; this is because the lifetime cost of a loan is lower.
The 30-year fixed-rate mortgage (“FRM”) dropped to 3.73%, the 15-year FRM dropped to 3.16% (from 3.25%), and the 5-year Treasury-indexed hybrid adjustable-rate mortgage (“ARM”) is down to 3.99%. Since the FRMs typically shadow the 10-year Treasury note, it’s widely assumed that the health of these bonds reflects how strong investors believe the housing market is – e.g., investors seem to be gaining confidence in the market.
Given that the Fed is likely to reduce interest rates a few more times this year, 2019 could shape up to be a big year for homebuyers, and sellers, alike. At the Chernov Team we understand that knowledge is power, and no knowledge is more powerful that knowledge of how the housing market is behaving, and how it will likely behave in the future. Here, all signs point to 2019 being a fantastic year for the housing market. At the Chernov Team we understand that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.