Are you looking for a sign to buy real estate? You might be in luck as we have seen interest rates drop.
Interest rates for 30-year fixed mortgages that were as high as almost 8 percent have settled back down into the mid-6s. So, if you felt like you’ve been squeezed from the affordability factor over the course of the last few months, you may want to jump back in and take a look at what your payment may be today with reduced interest rates.
On top of that, we are seeing more opportunities for some negotiation. So if you’re at a 6.5 percent interest rate for a normal 30-year fixed, there might be the possibility that we as your agents can help to negotiate with the seller to do what we call a 2-1 buy down. This is where they could credit some money back to buy down your interest rate temporarily, so that a 6.5 percent interest rate could actually go to 4.5 percent the first year, then 5.5 percent the second year. Then, in year 3, it would mature to 6.5 percent.
We don’t know where interest rates will be over the long term, but most people are indicating that in the future, interest rates will decline. Thus, that gives you the opportunity to refinance into a lower rate in the future.