The continuing low interest rates has been a topic of discussion in the media, at social gatherings and around the water-cooler. Last week’s closing interest rate for 30 year mortgages was 4.32%. Yesterday, 30 year mortgage rates reached a low of 4.125%, breaking the November 2010 record of 4.17%.
Refinancing activity is greatly increased due to the continued low interest rates. According to Mortgage Bankers Association, refinancing application volume has jumped by 63% in the last month Interestingly enough, the applications for home purchases have not matched the refinancing activity the low interest rates have churned up.
If you are contemplating a home purchase, it’s worth taking a hard look at today’s record low rates. Examine concretely how taking advantage of today’s rates will save you money during the life of the loan. Also, it’s good to keep in mind how much of a home you can afford at different interest rate points. Back in March 2010, the blog post How Do Interest Rates Impact Your Buying Power was published. This particular blog post has been receiving a lot of attention in the past two weeks, and the information contained within it is as relevent today as it was a year ago. It might be an opportune time to think about investing in your future.
Below are two of the charts featured in How Do Interest Rates Impact Your Buying Power for your viewing pleasure!
This article is not intended as an offer to extend credit nor a commitment to lend. The loan interest rates, fees and terms presented here are for illustrating purposes only and may not be currently available. Payment estimates courtesy of Windermere Mortgage Services.
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