Lower Interest Rates Mean One Thing

 

 

With the coronavirus sending the world into economic uncertainty, the Federal Reserve has done its part to maintain stability by reducing lending rates to near zero.

What that means for homebuyers is that mortgage rates have plummeted to some of their lowest levels in recent memory. As of publishing time, Mortgage News Daily was quoting 30-year fixed-rate conventional loans as low as 3.24 percent and 15-year fixed loans at 2.96 percent. What does that mean for buyers? With good credit and financial history, homes in nearly every market are as affordable as they’re going to get.

Every housing cycle has a trough (they wouldn’t be called cycles without them), and right now, with unemployment numbers creeping up, housing could hit one. However, because many people will be selling in this market, the combination of low rates and the need to sell will give many buyers more options than they’ve had the past 10 years. Many more.

So, now is the time, if you’re even thinking about buying, to size up your job, credit and housing situation and do a hard assessment of your goals. Do you have the cash to put down, or will you? Do you have the credit to secure a good interest rate? And lastly, are you looking seriously or just dabbling? If you’re ready on all fronts, think seriously about putting some cash on the barrel head. The time has never been more ripe for buyers who mean business—and might not be for years to come.