Now is the time to buy!
Mortgage interest rates fell 3-basis points already thismonth to 4.02%, according to Freddie Mac. And they’re expected to fall more inthe coming weeks.
30-year fixed-rate mortgages (FRM) averaged 4.02%, down from4.05% for the week ending May 18th.
15-year FRM averaged 3.27%, down from 3.29% last week.
5-year Treasury-indexed hybrid adjustable rate mortgagesaveraged 3.13% down from 3.14% last week.
This as median home prices continue to rise. In the firstquarter of the year, prices soared nearly 7%, according to the NationalAssociation of Realtors. The median price of a single-family home was $232,100,at the end of the quarter. That’s the fastest price growth since thesecond quarter of 2015, said NAR.
Lower rates help to offset rising prices.
Rates were averaged before the stock market’s “flight toquality” which may push mortgage rates lower even more, according to FreddieMac.
The average 30-year fixed-rate mortgage averaged 3.95% forthe week ending May 25th.
The 15-year fixed-rate mortgage dropped to 3.19% from 3.27%last week, according to the Primary Mortgage Market Survey. Likewise, the 5-year Treasury-indexed hybrid adjustable-rate mortgagedipped to 3.07% from 3.13% last week.
The median price of an existing home was $244,800 in April,up 6% from April 2016. That the 62nd straight month of year-over-year price increases,according to the National Association of Realtors.
As home prices rise, lower mortgage rates help buyers affordhomes, if they can find one amid consistently low inventory levels. Thoughprices are up there were more first time home buyers this April then any timesince July 2012 according to the National Association of Realtors.