Freddie Mac states, “While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market.”
For those who act fast, locking in this low interest rate can have a significant impact on monthly mortgage payments. For example:
• With current 30-year mortgage rates, the monthly mortgage payment for a $350,000 mortgage is $1,500. The same $350,000 mortgage with higher rates in 2018 would have a mortgage payment of $1,879. That’s a saving of $379/month or nearly $4,600/year.
• Conversely, with current 30-year mortgage rates, a monthly mortgage payment of $1,879 would be for a $440,000 mortgage. That means the same buyer that had a $350,000 30-year mortgage in 2018 could now get a $440,000 mortgage for the same monthly payment. A buying power increase of $90,000.
• Overall, the lifetime cost of a $350,000 30-year mortgage with current rates is reduced $136,000 from what it would have been in 2018.