Mortgage rates are a decisive factor when it comes to getting a new home. Needless to say that the housing market is a really expensive one. Buying a house at the right time could save you a lot of money. Not to mention, the many things you could do with that cash. Take for example investing it to get a larger nest egg for retirement.
Making the wrong decision may affect your financial situation and in some cases, it may end up in an unwanted foreclosure. Mortgage rates seem to be holding down as the year unfolds. According to Bankrate’s survey, those who have a 30-year mortgage as their goal. should know they went down to 6.42% from 6.43 last week.
How long have 30-year fixed-rate mortgages been decreasing?
According to the Mortgage Bankers Association of America, 30-year fixed-rate mortgages have kept falling for three weeks. The new rate is the lowest since last September 2022. It went up the first week in January to 6.58 percent. The second time it changed in 2023 went down to 6.42 while the third one dropped to 6.23. By the end of last week, January 20 it reached 6.2.
This is a good sign for those who are about to get a new house. There is no perfect or ideal situation for everyone to buy a house because it will depend on your financial situation. Having saved a lot for the down payment will always make things much easier. Despite the fact that mortgage rates have kept falling, it is still unaffordable for most people.
What if we compare the figures with those in 2021?
Mortgage interest rates are still too high compared to those in 2021. For instance, on October 25, 2021, the average interest rate for a 30-year fixed-rate mortgage was as low as 3.076 percent. Therefore, there is still a lot to wait till we reach that low percentage. Hopefully, the situation will improve and no more changes are necessary.
Remember that the Federal Reserve had to increase the interest rates several times in 2022 in order to bring down inflation. As the global economic situation is uncertain due to current affairs, it is unpredictable what may happen in both the short and the long run. Perhaps, those who want a mortgage should keep waiting.