*DON'T MISS MORTGAGE RATE NEWS FLASH 3RD PARAGRAPH*
Northern Virginia home buyers and sellers have been basking for years in historically low mortgage rates. In recent years, however, rates have been going up and down a bit like a roller-coaster ride — but with the general direction of the interest rate continuing its climb upwards.
Where the interest rates are and where they are likely to go is important to the overall health of the real estate market for both home sellers and home buyers. Often we will hear that mortgage rates are up by X percent or down by Y percent, but when most people hear that information it isn't very meaningful. After all, if rates go up or down by say 1/2 percent, that sounds as though it can't actually mean very much, right? Well, actually, even a 0.5% change will have a significant impact on your monthly Principal and Interest (P&I) payment.
MORTGAGE RATE NEWS FLASH — SPRING 2019
INTEREST RATE DROPS TO 15 MONTH LOW!
Mortgage rates have continued to retrace their increases of 2018 and now stand at a 15 month low! This is fantastic news and presents home buyers as well as home owners looking to refinance. But Don't Wait To Buy! Here's Why:
- Mortgage Rates Are Still Expected To Rise.
- Inventory Is Up Slightly But Finding The Right Home Could Still Take Some Time.
- When Mortgage Rates Go Up They Tend To Move FAST.
- If Rates Fall After You Buy — You Can Refinance.
- That Would Give You A Win - Win As Home Prices Are Already On The Rise.
SAVE EVEN MORE WITH OUR
HOME BUYER SAVINGS GUARANTEE
NOW BACK TO THE ORIGINAL POST
Suppose you have just purchased a new house in Fairfax County and your mortgage (That is the amount of money you have borrowed to buy the house.) is $400,000 - GREAT Homes For Sale in Fairfax - and your interest rate is 4.5% Your monthly P&I (Principal & Interest) payment will be approximately $2027 (see chart above). If your interest rate was just 1/2 a percent higher your monthly P&I jumps by about $120 per month. That's about 6% more per month for the same loan amount. For your monthly P&I to jump up by $120.00 without an increase in interest rates you would need to borrow nearly an additional $24,000. So, as you can see, even a tiny move in the mortgage interest rate can have substantial impact.
Instead of spending more than you have to buying your home, wouldn't it be nice to have a way to Guarantee you will save money instead? It's just one of the many benefits we offer to our V.I.P. Home Buyers. Check out the details of the only Dollar-for-Dollar $5000.00 Home Buyer Savings Guarantee we've ever seen. HERE
The 30-year fixed rate mortgage rate climbed consistently throughout 2018 until the middle of November. After that point, rates returned to levels that we saw in August — to close out the year at 4.55%, according to Freddie Mac’s Primary Mortgage Market Survey.
After the first week of 2019, rates have continued their downward trend. As Freddie Mac’s Chief Economist Sam Khater notes, this is great news for homebuyers. He states,
“Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy.”
In some areas of the country, including the Northern Virginia D.C. Metro Areas, the combination of rising interest rates and rising home prices had made some first-time buyers push pause on their home searches. But with more inventory coming to market, continued price growth, and interest rates slowing, this is a great time to get back in the market!
recent dip in mortgage rates but are they here to stay how will it impact the northern Va real estate market for home buyers and sellers? local real estate expert Dave Martin guides the most satisfied home sellers and home buyers in NoVA
WHAT IS YOUR HOUSE WORTH IN NORTHERN VIRGINIA?
CLICK BUTTON TO REQUEST A HUMAN EVALUATION
Will This Trend Continue?
According to the latest forecasts from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors, mortgage rates will increase over the course of 2019, but not at the same pace they did in 2018. You can see the forecasts broken down by quarter below.
What Should You Do Now?
It's that time of year that many of us have made some resolutions and set some goals for the year. If Selling or Buying a home was on your short list of things to do in 2019, let's get together and look at your options and plan a strategy that will work best for you. Reach out PHONE or EMAIL. You can also look for homes for sale throughout Northern Virginia also near the bottom of this post.
Real Estate News & Updates
Get Your Credit Score Up Fast — To Buy A House
Home Buying — Preparation for Success
Home Buyers - Costly Mistakes To Avoid In A Seller's Market
Move Up To A Luxury Home? — Now Is A Great Time!
Sellers These Are The Features Home Buyers Want Most
"Drop In Mortgage Interest Rates Here To Stay?"
is brought to you courtesy of Dave Martin Realty Group, your Northern Virginia residential real estate experts. If you're considering selling or buying a house in the Northern Virginia metro area, we'd love an opportunity to earn your business, provide you an outstanding experience, and demonstrate to you that:
"Help From The Best Agent Makes All The Difference."