Home Loans at Historic Lows

Lately, it can feel like each day brings a new headline about fluctuating market behavior. But amid the ups and downs of 2020, there may be some potential good news on the horizon. On July 16, 2020, the interest rate for a 30-year home loan had fallen to 2.98%. Also, the average interest rate for a 15-year home loan had declined to 2.48%.^1,2,3

Good news for homebuyers
Keep in mind that just two summers ago, the average interest rate on a 15-year fixed-rate mortgage hovered around 4%, while the 30-year was in the vicinity of 4.5%. With the average interest rate on these loans at new historic lows, it may be a smart time for first-time buyers to think about making their move.  Even though mortgage issuers are dealing with a level of uncertainty that makes it harder for them to judge risk and assess the long-term value of the loans, they originate.

Good news for investors
Believe it or not, hopeful homebuyers are struggling to find the right property: on July 4, 2020, the inventory of existing homes for sale was 31% smaller than it was in 2019. Even with these market conditions, 61% of respondents to a recent survey felt that buying a home in 2020 was a good idea. This interest in purchasing a new home despite the COVID-19 pandemic may be considered a "coincident indicator" by many. If consumers feel confident enough to go home shopping, that could indicate slowly returning economic confidence as well.³

Good news for everyone
Real estate plays an integral role in the health of the economy. Even when considering the many advantages of homeownership, it can be easy to forget that it is one of the most significant sources of wealth and savings for many Americans.⁴

Request a phone appointment. Let's talk. You don't have to be uncertain or feel overwhelmed about your financial future.  I provide a process so you can invest without fear.

^{1. OCRegister.com, July 16, 2020}

^{2. Realtor.com, July 13, 2020}

^{3. FreddieMac.com, July 16, 2020}

^{4. TheBalance.com, February 10, 2020}

^{The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.}