Rates Now at Lowest Levels since June 2013
The first several weeks of 2014 have been good for borrowers as mortgage rates have fallen to the lowest level seen in months. During the last half of 2013 mortgages on the 30 year mortgage increased from the mid 3’s to the upper 4’s. Even with rates in the high 4’s, borrowers still had the chance to lock in at historical lows as levels below five percent have only been seen in one other era, World War II.
Purchasing Power for Area Homebuyers is Up Over 5% this Year
During the first several weeks of the year signs of a slowing national job recovery have caused an increase in the bond market, which has put downward pressure on mortgage rates. During the last two months the 30 year rate has fallen nearly one half of a percent.
“The recent drop in rates has had a huge impact for local buyers. Real estate markets like Arlington, Mclean and Washington DC have median home prices well into the 600s or even 700s. At these prices, just a half percentage point drop in rates can increase buyers’ purchasing power by nearly $35,000,” said Arlington real estate agent Dan Lesniak.
With the drop in rates and the limited inventory correctly price properties in the DC Metro area continue to sell very quickly. For more information on how to take advantage of these lower rates call us today at 571-969-7653 or fill out the form below for a free report.