We recently took a look at monthly average mortgage rates for 2019, provided by Freddie Mac, and noticed a significant trend in 30 year home loans:
January - 4.46%
February - 4.37%
March - 4.27%
April - 4.14%
May - 4.07%
June - 3.80%
July - 3.77%
August - 3.62%
September - 3.61%
As you can see, the average monthly rate has declined every month so far this year!
It's difficult to overstate the positive influence this has had on our real estate market during the year. Given that, other than the occasional brief upward spike, rates have continually fallen, month-on-month, means that positive buyer sentiment has significantly strengthened as the year has progressed.
Indeed, in a recent Forbes.com report, it was noted that first time buyers are really responding to this trend, with 46% of home loans purchased by Freddie Mac this year being for first timers - the highest figure for over 20 years!
A vibrant entry level sector has an enabling effect throughout the rest of the house purchasing chain, so this is fantastic news.
Of course there's no guarantee how long rates will continue to show monthly average falls, so we can confidently expect buyers to be out in force in the coming weeks, as they try to lock in an ultra-low rate while they know they still can.
This is an extra motivation this year, on top of the usual great reasons for buying in the fall, including the upcoming job relocation season, moving in before the holidays and closing the home purchase before year end for tax reasons.
Why not contact us today for an informal discussion of how best to capitalize on this great opportunity.
