Recent Drop in Mortgage RatesJune 17, 2016
Concerns about the strength of the global economy plus the Federal Reserve’s decision this past week to keep interest rates from rising haven driven mortgage rates toÂ the lowest level seen since May 2013.
30-year fixed-rate mortgages have dropped from 4.25 percent in 2012, to 3.5 percent. 15 year-mortgage rates have dropped even lower to 2.81 percent. Meaning if you were to buy real estate in Destin, Florida and have a $250,000 mortgage, your monthly payment would be approximately $1,130 (if, of course, you have an excellent credit score). That certainly beats $1,190 at 4 percent.
This is where things get interesting. Because of this andÂ the state of the outside world, many economists now are NOT anticipating a rise above 4 percent this year. It would be hard to see them dip lower because they have already fallen to reflect a “sense of slowing job growth.” Besides lower rates create more opportunity for people who haven’t refinanced their home. As a general rule of thumb, its worth refinancing for most homeowners when a new mortgage rate is about one percentage point below an existing rate.
Long story short, now is a great time to take advantage of low rates andÂ buy a home or condo for sale in Destin, Florida.