Mortgage Interest Rates Hold Steady in Palm Beach County Florida
Palm Beach County Mortgage Rates Hold Steady
According to Freddie Mac, mortgage interest rates are holding steady. Recently, the average rate for a 30-year fixed-rate home was 3.55% with an average 0.7 point, a decline from the previous average of 3.59%. Last year, the average mortgage interest rate was 4.12%. One of the most popular options for refinancing is the 15-year fixed-rate mortgage, whose average remained steady at 2.86% with an average 0.6 point. At the same time last year, the average rate was 3.33%.
Interest rates have remained at historic lows, encouraging buyers interested in Palm Beach real estate to move off the sidelines and secure something before it’s scooped up. U.S. home prices are continuing to improve, as are prices in Florida, so the longer buyers wait to enter the game, the more likely they will be to pay more for the same home. Prices rose for five straight months ending in July, and increased an impressive 1.3% between June and July.
Federal Reserve Chairman Ben Bernanke's recent speech seemed to allude to even more stimulus and bond yields, which could help mortgage rates move even lower. Adjustable mortgage rates also reset to record lows recently, with the 5-year and 7-year ARMs falling to 2.76% and 2.9% respectively.
In a statement, Freddie Mac notes, "the looming employment report will be critical in determining whether the Fed acts at their meeting this month or defers until later in the year. While markets are expecting the Fed to act next week, it would take a weak jobs report to truly seal the deal."
Home buyers are definitely seeing the value in the lower interest rates. The last time mortgage rates topped 6% was in November 2008. Then, the average 30-year fixed rate was 6.33%. At that rate, a $200,000 loan would have carried a monthly payment of $1,241.86, whereas now, the monthly payment on the same priced home would be $930.78. That’s why so many people are looking to refinance into loans with lower interest rates; the savings are measurable.
Additionally, many first time home buyers are looking to move out of the rental market and gain equity in a home. With interest rates so low, it makes a lot of sense to stop paying someone else’s mortgage and begin working towards your own future. The trouble for many will be reduced inventory levels and stiff competition. A good course of action is to secure your financing before you begin house-hunting. That way, you won’t fall in love with a property that later on you find out you either can’t afford or can’t obtain a loan on.
Having an expert Palm Beach realtor on your side can make purchasing a luxury property in Palm Beach that much more seamless. If you’re interested in learning more about available luxury properties, please don’t hesitate to contact our team of Palm Beach Luxury real estate agents. We would love to discuss your real estate needs.
[cc_author style="bumber-b" author="gia"]