Mortgage rates continue to stay low which affects both buyers and sellers.
The buyers benefit because a difference of 1% in your interest rate on a $500,000 mortgage (Low for Key West and the Florida Keys) is $416.67 a month difference in your mortgage payment. That is a difference of $150,001.12 over the 30 year life of your mortgage. That's right, you will pay an extra $150,001.12 for your house if your mortgage interest rate is 1% higher. Now do you see how important interest rates are? If you're thinking about buying, now's the time. Call me at 305-731-0501 and let's start looking.
The sellers benefit because most buyers buy not based on the price of the house but based on how much money they will have to write a check for each month. If their interest rate is higher their payment is higher. That means less money they can offer to buy your house. If you've been thinking about selling, call me at 305-731-0501 and let's list your home while the rates are still down.
The Florida Association of Realtors put the article below out to all the Realtors in Florida.
The 30-year, fixed-rate mortgage averaged 2.96% this week, down marginally from last week’s 2.99% as it remains in under-3% territory.
MCLEAN, Va. – The 30-year fixed-rate mortgage (FRM) averaged 2.96% this week, according to Freddie Mac’s weekly survey. It’s a slight drop from last week when the FRM came close to the 3% mark, averaging 2.99%.
“The economy is recovering remarkably fast, and as pandemic restrictions continue to lift, economic growth will remain strong over the coming months,” says Sam Khater, Freddie Mac’s chief economist.
“Despite the stronger economy, the housing market is experiencing a slowdown in purchase application activity due to modestly higher mortgage rates,” Khater adds. “However, it has yet to translate into a weaker home price trajectory because the shortage of inventory continues to cause pricing to remain elevated.”
For the week of June 10, 2021:
- The 30-year fixed-rate mortgage averaged 2.96% with an average 0.7 point, down from last week’s average 2.99%. A year ago, it averaged 3.21%.
- The 15-year fixed-rate mortgage averaged 2.23% with an average 0.6 point, down from last week’s 2.27%. A year ago, it averaged 2.62%.
- A 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.55% with an average 0.2 point, down from last week’s 2.64%. A year ago, it averaged 3.10%.
© 2021 Florida Realtors®
These interest rates won't last forever. Whether you're looking to buy or sell Florida Keys Real Estate, take advantage of the low interest rates. Buyers, get more house for your dollar. Sellers, get more money for your house. Call me today to help you, 305-731-0501. Buying or selling a house doesn't have to be difficult. Let me help you.
Gary
