The Federal Reserve is currently debating whether or not interest rates will continue to drop in July. Even after the drop this week from 3.99% to 3.94% according to Bankrate, investors and homebuyers nationwide are hoping that there could be a quarter point to a half a point drop next month. The last time mortgage rates were this low was November of 2016. It was the seventh decline in the past nine weeks for the 30 year fixed rate mortgage, which was at 4.55% this day last year. Most institutional investors anticipate a quarter point drop in July of this year in order to combat the uncertainty of the upcoming trade talks between President Trump and Xi Jinping. If the Fed anticipates that these discussions may turn sour, then they will buoy the economy by lowering the interest rates to spur investment.
So what does this mean for new home buyers and sellers? Now is the time to start researching how much buying power you have, because with this new rate decrease, monthly payments will be lower than ever. You may not even need to put 20% down depending on whether or not you are in a competitive real estate market. This is the time of year where deals can be made, and with lower interest rates, your purchasing power might be stronger than you expected.
Thought about refinancing your mortgage? Buying a new condo? There’s never been a better time to see what’s out there on the market than right now before the Fall frenzy begins. Contact us on our website and let us help you navigate the market.