Mortgage Rates Are Going Down, So Why Isn’t Everyone Buying?
In light of the escalating trade wars between the United States, China, and Mexico, investors have been grabbing as many bonds as they can afford. In light of the economic instability, the 30- year fixed-rate mortgage (“FRM”) is down .17% to 3.82% (from 3.99%); the lowest it has been since September 2017. The 15-year FRM is down .18% to 3.28% (from 3.46%). Finally, the 5-year Treasury-indexed hybrid adjustable rate mortgage (“ARM”) is hovering at 3.52%.
Many home loans taken in 2018 are now eligible for refinancing, something most people would jump on given the 6-week decline in mortgage rates, yet many Americans are failing to do so; economists suspect this may be because the average consumer is woefully uninformed about how mortgages operate. Numerous studies have confirmed that the average consumer vastly overestimates how difficult it is to qualify for a mortgage, and therefore do not even bother seeking to benefit from the favorable mortgage rates. The fact is that you can qualify for a mortgage with a credit score of 580 (the average response was 650), and you can purchase a house with as little as 3% down (the average response was 10%).
In light of people’s mischaracterization of how financially established one needs to be to obtain a mortgage, it is no surprise that the housing market isn’t seeing unprecedented action; people simply believe they aren’t qualified to purchase a home yet. Further, many consumers seem to believe that it is incredibly difficult to obtain a mortgage; we are here to tell you that it’s not that difficult. The agents at the Chernov Team will walk you through the process, and help you find the home of your dreams.
At the Chernov Team, we know that knowledge is power, especially when it comes to obtaining financing for that dream home. At the Chernov Team, we understand that whoever shows up t the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.