by Matt Keating
Phil Hotle with RE/MAX at the Crossing says that record low mortgage rates have led to more people looking for a new home.
“There really has never been a better time to buy a house,” Hotle says. “First time homebuyers, or buyers looking for more room, are really in a great position to afford their next house.”
The Mortgage Bankers Association reported that the average contract interest rate for a 30-year, fixed-rate mortgage in July was 3.2 percent. According to Freddie Mac, at the end of July the weekly national average for the 30-year mortgage was 2.98 percent, an all time low. Shorter-term home loans, such as five, ten, and fifteen-year loans, have also had a drop in interest rates, making the prospect of moving into a new home for the fall very attractive.
The numbers speak for themselves. Pending home sales increased 44.3 percent in May, according to The National Association of Realtors. Refinance applications increased five percent one week in July and were up 122 percent over the previous week. The National Association of Realtors reports the high demand in applications is translating into sales.
“After months in lockdown, people are eager to either buy or build a new house,” Hotle says.
He’s right. Homebuilders are seeing a dramatic increase in buyers, according to the Commerce Department, which reported that single family housing build starts increased 17.2 percent in June.
“Home builders are seeing some strong and serious buyer traffic,” Hotle says. “There has really been a big uptick in people wanting to either build, buy, or refinance. It’s an ideal time to take advantage of these historic low rates.”
Low interest rates have created the perfect opportunity to buy, sell, or build a home. Contact Phil Hotle of RE/MAX at the Crossing at 317-919-8504 to learn more about the current market and for guidance with your real estate needs.