Good News for the Housing Market: Interest Rates Are Going Down - Chernov Team

Good News for the Housing Market: Interest Rates Are Going Down

For the fourth consecutive week, prospective home buyers are in for a bit of good news,
the mortgage rates have dropped to their lowest point this year. Specifically, the 30- year fixed-
rate mortgage (“FRM”) is sitting at 4.06% interest. Similarly, the 15-year FRM dropped .02% to
3.51%, while the 5-year Treasury-indexed adjustable-rate mortgage (“ARM”) increased by
.02%to 3.68%.
This good news comes after a bit of a rough patch beginning in 2018, as the sale of
existing homes has risen only once in 2019; however, it appears that there is a healthy inventory
of homes for sale – something that bodes well for the market in general in light of the decreased
interest rates.
Notwithstanding the fact, the U.S. economy is performing at a high level, many potential
homebuyers have foregone purchasing for a variety of reasons; over a quarter of people polled
stated that the cost of a down payment was the primary reasons they had opted not to purchase a
home and another quarter of people polled stated that the monthly payments on a mortgage were
too high for them to purchase a home. Roughly 1/10 th of people polled stated there weren’t any
homes that fit their needs and about 15% stated they weren’t sure the economy would remain
stable in the coming months.
Despite these concerns, the decrease in FRM and ARM interest rates is a good sign for
buyers and sellers alike, assuming the economy remains on its current trajectory; this is not a
given in light of the U.S.’s escalating conflict with China. At the Chernov Team, we understand
that knowledge is power, particularly when it comes to market trends and the overall health of
the economy. At the Chernov Team, we know that whoever comes to the table most prepared
leaves with the most, and the Chernov Team always leaves the table with the most.

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