As the new normal continues to change daily, mortgage interest rates are doing the same. If you haven’t already heard, federal interest rates are currently at an all-time low. Back in March, the Federal Reserve announced that it would be cutting federal fund rates between 0 and 0.25%. One of the first economic results from this cut is, of course, the reduction in mortgage rates.
With these low rates in place, many are left wondering how this affects buying power, monthly payments and more when it comes to homebuying. Interest rate changes have a huge impact on consumer behavior. When interest rates are low, borrowing money becomes cheaper and larger purchases become much more affordable. For homebuyers, lower, more favorable interest rates provide the opportunity to more easily qualify for a home in a desired price range and will likely yield long-term financial benefits.
Despite the current economic situation, buying power has not slowed down as homebuyers continue to buy new homes. However, that doesn’t mean current homeowners can’t take advantage of the rates as well. With interest rates remaining low, current homeowners may want to consider refinancing. This is especially true if the interest rates fell since closing on a home. Refinancing your home could potentially reduce your overall interest payments and therefore your monthly bills. Depending on the length of the loan, this could save you tens of thousands on your monthly mortgage payments over time.
Brenner Poole Homes remains open to help our customers find their new home. Model home and sales center are open regular hours and following all CDC guidelines for in-person visits. For those who would rather tour remotely, you can also schedule a private video conference with our onsite sales team to further discuss how you can call Spring House at Honey Farms home.
To learn more about Spring House at Honey Farms and move-in ready opportunities, visit www.HoneyFarmsLiving.com.