Thirty-year mortgage rates recently fell below 4 percent for the first time in history. But that’s not the only good news for home buyers. Monthly mortgage payments are also at record lows. A home buyer purchasing a typical American home at current average rates would have a mortgage payment of just $698 a month, similar to payments buyers would have faced 30 years ago.
Home prices were considerably lower in 1981, but mortgage rates were a staggering 18 percent. Today’s prices are higher, but because of these record low mortgage rates, monthly payment obligations are significantly reduced.
So What’s the Problem? Such remarkable interest rates and affordable prices, should have qualified buyers in the market for a home excited about their options, but unfortunately overly tight lending standards are making the process very difficult. Talk to a REALTOR® about how this affects their clients and learn what steps buyers can take to qualify for a mortgage.