One of the questions I'm most often asked by homebuyers these days has to do with where mortgage rates are heading. Since I don't have a crystal ball, nor am I a mortgage broker, I usually refer them to one of my preferred lenders.
What I can tell is that this is an EXCELLENT time to purchase or refinance a home, since money is on sale! According to
Freddie Mac, the average 30-year fixed rate mortgage rate slipped to a new all-time low of 3.49% last
week for borrowers willing to pay 0.6 discount points at the
time of closing (one discount
point is equal to one percent of your loan size). Likewise, the average 15-year fixed
rate mortgage rate dropped to a new all-time low last week of 2.77%
with the same accompanying 0.6 discount points.
If you have a home to sell, you'll want to pay attention to another important figure... months supply of inventory. According
to the National Association of REALTORS®, the national existing home supply
slipped to 6.1 months last month — very close to the 6.0-month marker which
separates a “buyer’s market” from a “seller’s market”. Here in the Triangle, we saw inventory levels drop by over 35% in August compared to the same period last year.
In other words, if you were thinking of putting your home on the market next Spring, you may want to reconsider and get it listed now. I'll be happy to recommend a good agent, if you don't already have one.
