If you are looking to refinance or buy a home in Metro DC, you may have the perfect window of opportunity right now. The historically-low mortgage interest rates we’ve had for some time have just moved lower!
Here’s why mortgage rates have declined, why it won’t last, and what the lending environment looks like today!
Mortgage Rates Fall as DC Debates Debt Ceiling
By most accounts, mortgage rates seemed poised to increase. The economy is growing, home builder sentiment is the highest it has been in 5 years, and consumer sentiment has improved. The financial markets are treading towards new highs, with both the Dow and the S&P showing a strong run-up.
So why are mortgage rates falling? (Not that we’re complaining!)
Bankrate.com explains that the Federal debate over the debt ceiling has shaken the bond market, causing a decline in long-term government bond yields. Mortgage rates are closely tied to movements in the bond market. While it’s very unlikely that the U.S. will default on its debts, the intense haggling by Congress creates a larger perception of risk.
However, in the odd chance that our lawmakers completely fail to achieve a consensus, our financial markets could react with sharp volatility that would drive mortgage rates higher. Most analysts agree that a new debt ceiling agreement will be reached, and so long as growth in the economy and employment continues, mortgage rates will see a gradual rise later in 2013.
Home Buyers in Montgomery County and DC Metro Have Excellent Financing Options
Are you sitting down? When is the last time you saw 15-year fixed rate mortgages at 2.89%? Imagine being mortgage-free in 15 years! With rates this low, a 15-year mortgage could be feasible for you!
Bankrate’s mortgage market survey also shows that 30-year, fixed-rate jumbo mortgages are hovering right around 4.04%.
Adjustable rate mortgages were also lower, with 5-year ARMs sliding to 2.74% and the 7-year ARM falling to 2.88%.
How much difference can the interest rate make in your mortgage payments? Let’s take a look. Back in early 2011, the average 30-year fixed rate mortgage was 5.07%. A $200,000 loan would have had a monthly principal and interest payment of $1,082.22. With the average 30-year fixed rate now at 3.60%, the monthly payment would now be $909.29. In this scenario, you would save $173 per month!
Find Home Buying Opportunities in Downtown DC, Bethesda and Chevy Chase!
Nothing lasts forever! The combination of low mortgage interest rates and reasonable home prices could make it possible for you to buy your dream home! Now is the time to explore homes for sale in Chevy Chase, Bethesda and the neighborhoods of downtown DC!
If you need to find a reputable mortgage lender, we will be happy to help you! Our professional network includes excellent mortgage lenders and home-related service providers throughout the greater Washington D.C. area.
When you have questions about buying a home, or need more information about a home for sale, you can trust our experienced team to give you the best in professional guidance. Contact us today, and let our Buyer Specialists give you the advantage in today’s market!
Melinda Estridge
The Estridge Group-Long & Foster Real Estate, Inc.
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