30 Year Fixed Interest Rates Drop Below 4%
With the south Florida real estate market continuing to heal as we wind down 2011 interest rates last week hit an all time new record low. Buyers who are diligently looking for the right opportunity will be most happy to find the perfect home and lock in rates that continue to amaze. As I tell all my clients the very best thing they can do is find a home that they will be comfortable in for at least ten to fifteen years; lock in these amazing rates and enjoy the ride. Here in Jupiter over the past 90 days a total of 195 single family homes have closed escrow at a median sales price of $269,000. At today’s average overnight rate for a 30 year loan a 20% down loan for the median Jupiter house would mean a monthly payment for principal and interest of $1,021.20. If you want to do an FHA loan with 3.5% down your monthly payment for principal and interest would be $1,231.83.
Interest rates decreased last week for the third time in four weeks and the other week in that span they were unchanged. During that span rates for a 30 year fixed mortgage have moved down 14 basis points. Today we are sitting at another all time record low.
As of this morning, the average overnight rate for a fixed 30 year mortgage as reported by Bankrate.com was at 3.95% down 7 basis points from where we stood one week ago. The benchmark 15 year fixed rate standard was at 3.29% down 8 basis points from last weeks level while the benchmark 5/1 adjustable rate mortgage dropped by 2 basis points to 2.91% from 2.93%. While nobody can say for sure that the lowest rates are behind us it is going to be interesting to see if they can hold this drop under the 4.0% barrier which they have unable to do on a few past attempts.
With a new low in interest rates and inventory levels of homes growing, albeit slightly, those that can take this opportunity should be very happy this holiday season.
“Results Driven Real Estate” is dedicated to providing our readers the most timely information and analysis of the metrics affecting the real estate market. It is this passion for our business and our customers that makes dealing with us different; we care not about closing the deal but ensuring we are helping each client make the right decision based on their individual circumstances. Again, if you are going to borrow money to purchase your home NOW is the time and I beg you not too wait too long. If we can be of help in any way just give Tom a call at 561 308-0175 or send an e-mail to firstname.lastname@example.org and we are most happy to serve you in any way that we can.
Always at Your Service,
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty