Mortgage Rates Finally Drop

Finally! Mortgage rates are starting to come down. 30 year fixed rate mortgages are finally in the mid 6% range and some 15 year mortgages even dropped below 6. This is the lowest mortgage interest rates have been in a year and buyers are jumping to lock in.

“This is great news for anyone looking to buy this summer,” says Lee Schilare, Sales Associate at ERA Justin Realty, “Their monthly payment will be less than if they bought in the spring.”

“This is also great news for someone who did buy at a higher rate,” says Jennifer Darby Metzger, Broker/Owner at ERA Justin Realty, “We are already starting to see people refinance. This is why we always say ‘marry the house and date the rate.’”

Many homebuyers put off their house search the past year as interest rates hovered close to 8%, a far cry from the abnormal 3% and lower of the pandemic years. 

“People who delayed buying because of the mortgage rate may have missed out on their dream home,” says Metzger, “High interest rates come and go. Loans can always be refinanced. However, the home you have your eye on will not be on the market forever.”  

The reduction in mortgage rates is a game-changer for homebuyers. “Real estate agents are already starting to see an uptick in viewings,” says Schilare. There is a good reason for that. Lower rates translate to smaller monthly payments, making homeownership more accessible to more people. “For some homebuyers, a lower interest rate – even if it’s half a point – can make the difference between buying a home or continuing to rent,” adds Schilare.

This is particularly true for first time homebuyers who were previously priced out of the market. More affordable interest rates are expected to drive a surge in home purchases. Homeowners whose house has lingered on the market will benefit too – and could even see multiple offers, some perhaps over the asking price, and quicker sales.

Bottom line: Watching interest rates finally decrease is increasing optimism in both the housing and mortgage industry.  Every little partial percentage point counts, and if they continue to drop, mortgage brokers predict refinancing will increase this fall and winter. When interest rates drop,  homeowners also have the option of cashing out on their current property to pay off debt or even purchase a second property.

If you’re interested in finding out what mortgage rates look like, contact Lee Schilare or any of the experienced agents at ERA Justin for up-to-the-minute information. Give us a call at (201) 939-7500 or drop us a note at ERAJustin.com.