This year, mortgage rates have started to slowly climb above recent record-breaking lows. Many Beacon Hill apartment renters planning to move may feel like they’ve missed the chance to score a great rate on their next mortgage. In reality, there’s still time to secure a rate far below the historic norm on a downtown Boston condo. Here’s why.
After creeping up for seven consecutive weeks, average mortgage rates have dropped more recently (See graph above). With rates taking a slight dip over the past two weeks at the same time the inventory of Boston real estate for sale is so low, homeowners today are sitting in the optimal seat to sell. What’s the advantage of selling your Boston condo now? Securing a low mortgage rate on your next home. To take advantage of today’s real estate market, experts are encouraging homeowners to act now before interest rates climb. Danielle Hale, Chief Economist at realtor.com, explains:
“…mortgage rates slid for a second week … but we don’t expect rates to stay at this level for too long.”
Hale continues to say:
“For sellers, getting in early optimizes odds of a quick sale at a good price before there’s too much competition, but that means acting now … In this environment, sellers probably really can’t go wrong, and that’s especially true in the nation’s hottest housing markets where homes are selling quickly and getting the greatest number of viewers online.”
Most experts agree that rates will continue to trend upward. Sam Khater, Chief Economist at Freddie Mac, states:
“Despite the pause in mortgage rates recently, we expect them to increase modestly for the remainder of this year.”
In addition, Freddie Mac recently released their Quarterly Forecast, which notes:
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.” (See graph below):
While buyers everywhere want to secure the lowest rate possible, it’s important to remember that today’s rates are still much lower than the historic norm. Odeta Kushi, Deputy Chief Economist at First American, emphasizes:
“While mortgage rates have trended up in recent months, they are still historically low, so relative to one year ago, housing actually is still more affordable and that’s really thanks to this low mortgage rate environment we find ourselves in.”
If you’re thinking of moving into a Boston Seaport condo or a Beacon Hill home, don’t miss the opportunity to score a great rate on your next home mortgage. Let’s connect today so you can get your house ready to sell and find your dream home while mortgage rates are still low.
The News about low interest rates is all over the place right now. It seems like common knowledge that these low mortgage rates mean that it’s a good time to buy a Beacon Hill condo for sale, but not many people know why.
Here are some ways that lower mortgage rates could benefit a Boston Real Estate buyer
1. Better rates to buy: Lower mortgage rates mean Midtown condo buyers will have lower monthly payments, which means that it’s more affordable to purchase a Boston high-rise condo. This can mean a lower monthly payment than planned or a larger Boston condo for the same mortgage.
2. Buy sooner than planned: Now that Boston real estate mortgage rates are lower, buyers might be able to make the leap sooner than they had expected. It’s certainly a great incentive for starting the home search.
3. Higher inventory: Because of better rates, more Boston condo for sale buyers are ready to step into their next home. We see it across the board with homeowners. With lower rates, people with starter homes make the move to a larger home. Likewise, empty nesters might take advantage of lower rates to move to a smaller home. All this movement creates more inventory, which is always good for buyers.
4. Make the Boston condo better: By locking in a lower mortgage rate, many Boston Midtown condo buyers are able to buy a condominium that needs some love. Whether it’s simple updates or a total HGTV-worthy renovation, purchasing a house that needs work at a low rate is a good way to build equity in a home quickly.
5. Lock it in: Sure, low rates are great for the immediate future but keep in mind that these low rates will be locked in for as long as 30 years if you take advantage now.
These lower interest rates could be just the thing to make buying a Boston condo for sale now an even better investment! In addition, the Boston real estate market continues to be a great investment. If you’re wondering if this is the right time to buy a home, contact Ford Realty at 617-595-3712.
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