Although mortgage rates are still above the record lows, mortgage interest rates have been falling. Rates rose this past June due to the yields on climbing long-term government debt. Investors became concerned that large amounts of extra government debt would trigger inflation. Experts speculate that mortgage rates fell this past week from market concern due to the weakening labor market. Whatever the reason, lower mortgage rates are great news for home buyers and home sellers in Andover, North Andover and the Merrimack Valley. Look at the difference just a 1% point increase makes in these loans.
People are waiting for prices to continue to drop; however, when rates go from 5% to 7%, it is the equivalent of a 20% increase in price to the borrower. Now is the time to buy.
For more information on how even small changes in fixed mortgage rates contact me at RE/MAX Partners in Andover, MA.
