Home mortgage rates are at an all time low, slipping to incredibly low rates in recent months. Today, a buyer can get a loan under 5% with most lenders. These are historically low mortgage rates that are fueling the housing recovery in San Diego.
Last spring, in an effort to keep mortgage rates stabilized, the Federal Reserve began buying back over $300 billion in Treasury notes. Due to these low rates, people are buying homes and refinancing in large numbers.
It’s a great time to buy a home when home prices are low and especially when they are coupled with low mortgage rates that you can lock in for 30 years! It’s no wonder mortgage applications soared 16% in recent weeks.
In dollars and sense, a 1% jump in the rate of a mortgage would mean paying about 10% more per month for the same home. The government has also stepped up its shot in the arm for the housing market with the FHA, or government backed loan, aimed at helping people get into homes that qualify but with less of a down payment. FHA loans allow buyers to purchase a home for as little as 3.5% down and with extremely competitive rates. Banks are willing to give these loans because Uncle Sam is backing them up.
If you’re a buyer on the fence, you may want to consider that these rates won’t stay low forever, nor will home values. Get out there and get some information. You’ll be surprised.
Visit us online at HomeReach.com to view all San Diego homes for sale.
David Tal
HomeReach.com
Broker/REALTOR/President
mobile: (619) 955-7706
efax: (619) 872-2471
www.HomeReach.com
Tags: mortgage, san diego homes for sale
