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
Mortgage rates largely depend on a variety of external economic factors. Since the economy can be unpredictable at times, there’s no clear-cut answer as to where mortgage rates are headed. The Fed is generally expected to make one more rate hike before the year is out, but as the first half of 2017 has shown, an increase in the federal funds rate does not necessarily equate to increased mortgage rates.
Parts of the economy are strong, including a low unemployment rate and a rise in job gains. But inflation remains weak, which has kept mortgage rates down. North Carolina homeowners enjoying a strong local economy in Charlotte can take advantage of the current market by reaching out to a mortgage broker to see how low rates are today. It’s rare to see an overnight spike, so by getting your financing pulled together today, you can be ready to jump when your dream home comes on the market.
Use an experienced mortgage broker like Mecklenburg Mortgage to navigate the entire home loan process. With mortgage rates falling, there’s truly no time like the present to purchase or refinance your Charlotte property.