Charlotte, North Carolina, is quickly becoming a national real estate hotbed. With a strong financial sector and an ever-improving public transportation system connecting more and more of the metro area, it’s no wonder why so many people choose to live here. And while home prices are on the rise, mortgage rates are on the decline, both in Charlotte and throughout the country.
Keep reading to find out how mortgage lenders are helping buyers lower their home loan payments each month with falling rates.
A Pleasant Surprise for Home Buyers
Ever since the Federal Reserve began to raise interest rates in December of 2016, there’s been a lot of commotion in the loans industry surrounding increasing costs. In the mortgage industry, however, this scenario simply hasn’t played out, despite the addition of two Fed rate hikes in 2017. Not only are mortgage brokers still seeing rates at a near historic low, recent data shows them back on the decline.
According to mortgage buyer Freddie Mac, the average 30-year fixed rate mortgage dropped from 4.03% to just 3.96% on July 20th—that’s a 0.7% decrease, which is quite substantial. Fifteen-year fixed mortgages saw a similar dip, with the average mortgage rate dropping from 3.29% to just 3.23% in the same period.
What does this mean for buyers? It shows that now is a great time to look for a home and take advantage of extraordinarily low rates. Even current homeowners can take the time to evaluate their current mortgage and decide if refinancing is a good option. Rising property values in Charlotte paired with a low mortgage rate could add up to a strong investment over time.
The Future of Mortgage Rates
“On the other hand, you’re not tied to the property nor do you have to come up with a down payment and closing costs to live there,” says Realtor Josh Bushner in Austin, Texas. “If you’re new to a city or not sure you’ll be there for longer than three years, I usually recommend renting until you’re certain you’ll be staying longer. Also, make sure coming up with a down payment won’t put you in a cash-strapped position. Take time to get familiar with a city and find neighborhoods that will meet your lifestyle.”
Elizabeth Cales of Clarksville, Tennessee, says that despite being financially secure enough to purchase a home, she’s happy to rent.