Freddie Mac announced yesterday that for the first time in history, the average interest rate for a 30-year fixed rate mortgage has dropped below 4.00% to 3.94%. Rates for 15-year fixed rate mortgages are even lower, at 3.26%. Last year at this time the 30-year rate was 4.27% and the 15-year at 3.72%.
When you combine the low rates with prices that have generally declined throughout the county you have a great opportunity to buy more home for less money. On a $300,000 mortgage the principal and interest payment at 4.27% is $1479 per month. At 3.94% the monthly payment is $1421 per month. That is a savings of $58 per month which may not sound like much, but over the length of the mortgage, that is a savings of over $20,880.
So whether you’re looking for your first home, a move-up, or an investment property, now is a great time to buy! Curious about what’s available? Give me a call and I’ll be happy to send you some listings of homes and investment opportunities throughout San Diego County.
October 11, 2011 at 9:41 am
The crazy thing about the Freddie Mac rate survey is when they announce it, the rate has usually changed for the better or worse. This survey is almost never accurate.