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Mortgage Rates: Limbo Low | What Homebuyers Need to Know

Whether you are a professional real estate investor, current homeowner, renter, or someone that knows as much about real estate as rocket science, you’ve still probably heard that rates are low. The question is, how low? You’ve probably been hearing things like, “historically low rates,” “now’s the time to buy or refinance,” or “don’t miss the train.”

The truth is, they have been the lowest in recorded history for roughly six plus years now. So don’t let that train pull away without you…

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Following the housing and economic crises that sent us spiraling into the 2007 recession, rates fell significantly. Home values plummeted causing homeowners to become underwater on their mortgages (owing more than their home is worth), and foreclosure rates to be at an all-time high. The Federal bailout and implications of relief refinance programs allowed for steady recovery. As the economy slowly rejuvenated, rates began trending up once again. So why have they fallen exceptionally low yet again? The United Kingdom’s decision to leave the European Union caused the stock market to plunge, in turn affecting mortgage rates.

A statement published last Thursday by Sean Becketti, Freddie Mac’s chief economist said, “In the wake of the Brexit vote, the yield on the 10-year U.S. Treasury bond plummeted 24 basis points. This week’s survey rate is the lowest since May 2013 and only 17 basis points above the all-time low recorded in November 2012. This extremely low mortgage rate should support solid home sales and refinancing volume this summer.”

What Does That Mean For You, The Consumer?

It means “don’t miss the boat!” If you have dreams of becoming a homeowner and enjoying all the perks that go along with it, now is as good a time as any. 

In case you are wondering where to start, the first step is a mortgage consultation and getting pre approved with a trusted Mortgage Loan Specialist (…and I know some great ones). Second step is pulling the trigger. Real Estate is one of the safest investments that you can make for you and your family, so why wait? Get pre-approved today and then let’s go shopping for your home!

Questions?

If you have mortgage questions, or want a great Realtor to help you buy or sell a home, please feel free to reach out to me!

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Ashley Bailey, Realtor®(A), RS-78080
License #19928
Direct: (808) 673-8947
ashleybailey@hawaiilife.com

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