How Low are Mortgage Rates?

Mortgage rates have dipped to a record low for the second time in as many months since the Covid-19 pandemic began.  The 30-year fixed-rate mortgage dropped to an average of 3.23% during the week ending April 30, a decrease of 10 basis points from the previous week, according to Freddie Mac. This represents the lowest level since Freddie Mac began tracking this data starting in 1971. A year ago, the 30-year fixed-rate mortgage averaged 4.14%.  

What Do Low Interest Rates Mean for Bend Oregon Home Buyers?

Low interest rates mean that the average home buyer can afford more than before.  If you review the chart, you will see that the difference of 1% in the mortgage interest rate can be the difference between buying a $630,000 home vs a $700,000. In both cases, the monthly costs are roughly the same, but the home purchased can be significantly different.

However, in order to qualify for a low interest rate mortgage, the borrower has to have excellent credit scores and be considered low risk.  This can be problematic during the Covid-19 pandemic with so many out of work and with lenders fearing that more will join the unemployment ranks. Already 3.5 million homeowners have requested relief from making their monthly mortgage payments.  Banks have little interest in lending to home buyers who will not be able to pay their monthly bill.

There is a Cost to Waiting to Buy Your Bend Real Estate

With interest rates at the lowest it has ever been, the cost of waiting to buy now instead of in a few months could be the difference on whether or not that dream home could be yours. If you qualify for a loan, this may truly be the best time ever to buy.