March 4, 2024
If you are keeping an eye on mortgage interest rates, you may have noticed that they are falling, meaning this might be an excellent time to purchase a new home in Evergreen.
Mortgage interest rates change on a daily basis, but economists are seeing a trend downward. Last year interest rates skyrocketed to a high of 8 percent at one point. This year interest rates are already falling.
Driving the rate reduction are pauses in federal rate increases by the Federal Reserve. The Federal Reserve has paused three times, with two of these pauses leading to a drop in mortgage rates. On November 1, the date of the second pause, the average interest rate for a 30-year fixed-rate mortgage was 8.06 percent. For a 15-year mortgage, it was 7.20 percent. On December 13, those rates stood at 7.31 percent and 6.70 percent, respectively. And the rates have fallen since then.
What does that mean for homebuyers? Purchasing your new home now will save you hundreds on your mortgage costs over the previous year.
Builders are helping homebuyers even more with incentives offering rate buydowns or extended rate locks. An interest rate buy-down allows you to pay extra money to get a lower interest rate for a certain number of years. An extended interest rate lock allows you to cap your interest rate for an extended period, protecting you if interest rates rise before your home closes. Check with your builder to see what incentives they are offering.
With interest rates on the downside on and builder incentives that can save you even more on your monthly mortgage, now seems like the perfect time to buy your dream home in Evergreen.
