MORTGAGE RATES HIT AN 8 YEAR LOW

Coronavirus worries are sinking bond yields. 30-Year fixed mortgages have fallen to an average of 3.25%, an 8-year low. (According to Mortgage News Daily) 10 year Treasuries are now at their lowest number on record. The stock market had a rough week. Dow Jones Industrial average dropped over 3,600 Points. Where do we go from here? The stock market has had a great run up over the past year. We are now in correction territory from April 2019. Fundamentals in the economy are still good, wages increased last month, consumer spending is still up. Many companies are now tapering their guidance for the rest of the year due to the possible uncertainties ahead. Pandemics such as SARS and the Coronavirus are more challenging for analyst to gauge. We won’t know the true impact until months after the virus has been controlled and mitigated. That being said, you now have a rare chance to lock in a low interest rate. Is this a great time to buy a home?

Yes, with interest rates at an 8-year low this give you a rare opportunity to capture value in either your purchase price or monthly payment. See example below.

​This first graph depicts the full estimated costs of ownership in Fulton County, GA. $500,000 dollar home with a 30 year Fixed rate mortgage at 4.5%

The second graph keeps all variable the same but changes Principle and Interest. The light blue on the right side of the ring. You can see how having these lower interests rates can really help out your monthly payment. If you are able to capture this rate you will be saving nearly $350 dollars a month vs. purchasing a year ago. CURRENT OWNERS: If you purchased a home in late 2018 – Early 2019 you probably have an interest rate around 4.5% If you look at the two graphs you can see the savings on a $500,000 home. If you have already purchased and your rate is 3.95 % or higher this is a great opportunity for you to consider refinancing your home if you have no intention to move in the next 2 + years. HOME BUYERS: We are still dealing with low inventory and this trend is not expected to change anytime soon. No matter what price range you are looking in feel free to reach out to me. We can sit down and discuss your needs to help you find an amazing opportunity. There are great opportunities in Atlanta that start from $275,000 and higher if you are looking for a single family home and there are many great Condominium opportunities starting from $150,000 around Atlanta. Reach out to me today! I'm always available to help and would love the opportunity to work with you. Robert Heltzel, Realtor®
Disclaimer. Consult with a mortgage lender for more information. Rates are stated as APR and are subject to change multiple times on a daily basis. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant.