2020, as well all know, has been a year unlike any other in history. The COVID-19 pandemic has created enormous social challenges that are continuing to unfold before our eyes. But did you know that this year has also seen historically low mortgage rates? In other words: If you’re considering buying your first home, right now could be the perfect time to do so.
Here’s everything you need to know about today’s low mortgage rates and how they can be leveraged by first-time homebuyers.
US Mortgage Rates Remain Low at the End of 2020
Every mortgage comes with an interest rate which determines the amount that a borrower will need to pay each month. Mortgage interest rates vary between lenders, and they can also fluctuate over time in response to broader economic trends. They can also vary depending on the borrower’s credit history.
Low mortgage rates provide great incentive for anyone who is buying their first home or refinancing an existing loan. This year, the COVID-19 crisis has caused mortgage rates across the United States to plummet. This has ushered in a golden era of opportunity for aspiring homeowners. On November 5, 2020, the average 30-year mortgage rate hit an all-time low at 2.78%. (To put that into context, the 2019 record low was 3.49%.)
Market Upticks Predicted, But It’s Not Too Late to Score a Low Rate
These historically low mortgage rates can be attributed mainly to the economic decline that has occurred during the pandemic. But economic experts have begun to express confidence that this trend could soon be coming to an end. Joe Biden’s election and an upcoming COVID-19 vaccine, in particular, could cause the market to slowly but surely recover. This would be undeniably great news as a whole, but it would also cause mortgage rates to begin climbing again.
Act Now to Take Advantage of Low Mortgage Rates
The bottom line is this: It’s still possible to score a mortgage rate below 3%, but you’ll need to act soon. As the old saying goes, deals this hot won’t last!
The best and most reliable way to lock down an optimal mortgage rate is to partner with an expert broker. At Mortgage Solutions Financial, we specialize in helping individuals and families who are buying their first home. Contact us today to learn more about how we can help you to take advantage of today’s low interest rates!
