Industry News

What You Need to Know About the Historic Low Mortgage Rates

October 9, 2012

If you haven’t been paying attention to the mortgage headlines lately but are in the market to purchase a home, I have some really great news for you. We’re currently experiencing historic low mortgage rates, which should excite anyone who’s even remotely thinking about buying a home.

I remember my grandpa telling me how there were record low mortgage rates back in 1952. Now, we’re at those record low rates again. If I had to guess, I would say these historic low mortgage rates happen once every three generations.

According to this CNN Money article, the average 30-year fixed-rate mortgage fell to an all-time low of 3.36%, according to a weekly survey by Freddie Mac. The rate dropped from 3.4% the previous week. The fixed-rate 15-year mortgage also hit a new record low of 2.69% from 2.73%.

Mortgage rates have historically been at 6%, so this is a significant drop. What does all this mean? Now is the time to make a move. In my opinion, this may be the best time to buy a house in the last 100 years!

I’m talking to you fresh-out-of-college professionals and anyone else who has been shying away from buying a home. If you think you can’t afford to own a home, but deep down you’d really love to, you need to take a look at the opportunities. The historic low mortgage rates aren’t going to last forever, so take action sooner than later.

Here’s my best piece of advice to anyone interested in buying a home, but who isn’t sure how to best take advantage of the record low mortgage rates: Contact a mortgage professional and get the scoop. Even prior to the low mortgage rates, I can’t tell you how many times first time homebuyers have come to me thinking they couldn’t afford a home, and I had the distinct pleasure of educating them on why and how they could.

It may seem obvious, but those outside of the mortgage business don’t truly understand what “record low mortgage rates” means. It’s on those of us working in the mortgage industry to help educate consumers, so make sure you take the time to get that education. Don’t just assume you’re not ready to own a home.

Questions? Leave a comment, or give me a call at 248.658.2561. 

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