The housing market is something that changes and fluctuates from month to month. What might seem like a trend that will hang around for months might change overnight. One thing that many people notice a huge difference in is mortgage rates. Taking the time to compare current mortgage rates to historical mortgage rates can truly help shed some light on current housing trends.
Mortgage Trends Over the Past Few Years
One of the biggest things with housing trends is, of course, mortgage rates. Mortgage rates keep some people from being able to purchase a home or from actually wanting to try buying a home. In 1974 the average home mortgage rate for a 30-year loan was about 9%. Today, the average mortgage rate for a 30-year loan is about 7%.
Though this might seem like a good thing in comparison, most people are used to the rates from the past few years that were down below 5%. Some things do affect personal mortgage rates and the rates as an average. The first is, of course, your own credit score. A higher credit score is going to result in a better mortgage rate.
Having a down payment or a portion of the home’s total cost can also help lower your mortgage rate a great deal. Four factors affect the overall rates that you are going to get. First is the credit risk; a better credit score will get you a better rate. The next thing is the amount of time for the loan. If you take out a longer loan, you get a lower rate. The next are tax considerations and if there are any tax breaks. Last is the convertibility of the loan or how easily it can be changed.
How To Compare Current Mortgage Rates for Today
You can go on a range of different websites that will help you compare current rates and current loans that you might be able to get. You can get some great options when searching online for mortgage rates, and you can really take a look at various banks, the available rates, and your options.
You can also take the time to talk to a bank loan officer to see what some current rates are and what some options are for your particular needs and situation.
Perry House Plans can help you design and build the house of your dreams and keep you within your budget. Reach out for a consultation today.
Categorised in: Home Trends