If you had the chance to go back in time would you? There are times when everybody wishes they had a do-over, and today may just give you the opportunity to do that.

There are global and national factors present today keeping US mortgage rates at historic lows, and they have corrected again to lows that we haven’t seen in over 3 years. So you may just get that do-over and be able to rewind the clock on your present mortgage to grab rates that we haven’t seen in years.

Matthew Graham with Mortgage Daily News says,

“Mortgage rates haven’t been this low for this long in years–3.5 years to be exact…the average lender is still quoting 3.5% or lower on top tier scenarios.”

Matthew Grahm, Mortgage Daily News – 20, Feb 2020

The present low mortgage rates have been close to rock bottom for almost a month now. There have been low rate streaks lasting longer, but the most recent one was in the summer of 2016 and lasted for 3 months.

This is good news coming into spring as more inventory of homes for sale comes onto the market bumping values in most areas. With new homes for sale, the market will give us a better picture of market values from last summer to this year, and we are fairly optimistic the picture will be a great one.

“Fannie Mae says the U.S. economy appears to be sustaining itself…” reflects Jan Swanson with the Mortgage Daily News. On February 18th, 2020 Jan went on to say,

(Fanny Mae’s) Economic and Strategic Research (ESR) group is upgrading its forecast for business fixed investment (BFI) in the second half of 2020 and beyond and have upgraded expectations for the GDP in both 2020 and 2021.

This is a complicated projection, but the short analysis shows, “The company’s economists also expect greater strength in every part of the housing market over the next 18 months.” said Jan.

What are your options?

  1. You don’t need to, or want to, move: This is fantastic because you can look at refinancing your present mortgage to a new lower rate to save you money each month to move to other vehicles like a retirement account, or saving for a vacation you have always wanted to take.
  2. You are staying, but want to do a remodel: This is a great time as the new inventory of homes for sale coming on the market may bump values in your area and increase the potential equity in your home. Couple that equity with the mortgage low rates and you may be able to tap into a low rate HELOC so you don’t have to use out-of-pocket money to get things done. An added bonus is your remodel will possibly raise the value of your home increasing your home’s equity value and your bottom line net-worth.
  3. You are considering a move: If you have been in your home for more than 3-years, you may be in a strong equity position in your present home. Home prices have continued to be strong as the market has increased over time in most areas. Every local market is different, but you could have significant equity to use for your next purchase, and a new mortgage could possibly be at a lower rate than you are paying now.
  4. You are renting and want to buy: If you are paying over $1000 per month for rent, you may be able to take advantage of these low mortgage rates to snatch up your first place. There are low-down payment and no-down payment programs available for first-time buyers that will give you historically great rates even if your credit is slightly challenged.

The Bottom Line

No matter where you sit (staying put, remodeling, or moving) knowing your options throughout the year is always helpful. All homeowners should be aware of their options in light of the mortgage rates and the present market value of their homes.

“Housing activity will remain solid and add to overall growth.“

Jan Swanson, Mortgage Daily News – 18, Feb 2020

With the present projections looking strong on all fronts, don’t wait to refinance or get your pre-approval for that next purchase. We are here to help you get connected with a mortgage professional to get the answers regarding mortgage options in light of your present financial position.

As always, I’m asking the question, “How can I help you today?” Even if you are not planning a real estate purchase or sale soon, I want to help you in any way I can with your present situation. Check out our home value analysis for the specific possibilities on your home, and check out our recent Market Update for your area to give you a general look at what’s happening in your city.

I appreciate you looking us up, and letting us be your information source for anything you may have a question on or need help with. We love people, and we love properties. Just reach out and call us at (503) 799-8354 to get answers to your questions.

Cheers,

Michael Jester
Oregon Licensed Real Estate Broker
My Real Estate Advisor Team
(503) 799-8354 cell
(503) 437-9005 office
michaelj@myreateam.com

Bella Casa Real Estate Group
207 NE 19th Street, Suite 100
McMinnville, OR 97128
(503) 437-9005 office
https://thebellacasagroup.com

My Real Estate Advisor Team is not a licensed mortgage lender or financial advisor. We are real estate agents and we are not licensed to give financial advice for your specific financial position. We only present these market reflections to give perspective and all information should be checked against your present financial picture. This information is not intended to be financial advice or direction regarding the housing market, bond market, stock market in any way. This is for informational purposes only and you should always consult your licensed financial advisor and licensed mortgage lender for specific information.