Homebuyers Lowest December Mortgage Rates in Years


Christmas has come early for potential homebuyers throughout Palm Desert and Palm Springs. For the first time in seven years, mortgage interest rates have been the lowest this December than any other December over the last seven years. A recent study by Money Wise.com reviewed interest rate data from Freddie Mac. We've been enjoying low-interest rates for several years now but this month it's the lowest December we've had in seven years. This is an attractive feature for potential homebuyers. If you've been on the fence about selling or wondering when you should locking your rate, now would be a good time. Mortgage rates are holding steady with an average 30-year mortgage rate of about 3.68%. This is the same that we saw last week so rates aren't moving much right now. But does that mean that you should buy a house around Christmas time?

This can be a stressful time to buy or sell but it's not impossible. People need to buy and sell regardless of the time of year so it's important that if you're thinking about buying, lock in a rate that's good for 30 days or so and then take your time looking for the right home. Rates have stayed the same since about mid October but they are far below what buyers saw in 2018 when the average was about 4.75%. Even if you're considering a refinance, if you can drop at least one full point, it's well worth it.

Refinancing might be a great option.

Even if you just took out a home loan last year you still might be able to lower your monthly payment dramatically by refinancing into a new loan at a lower rate. Homeowners who refinance their mortgage during the spring are now saving about $140 a month or $1700 a year according to Freddie Mac. It's natural for mortgage applications to fall about 10% during the Thanksgiving week but for those buying homes, it actually increased over the last couple of weeks. Homebuyers are pretty vicious right now and are looking for the best deal, which is great! With low-interest rates, modest inflation and a solid job market, the US housing market stands firm. The forecast looks good over 2020.

 If you've been on the fence about buying a home or even refinancing, give us a call. There are some great rates out there and now is a good time to consider buying a house because sellers are motivated and you're more likely to get a great deal.