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The Average Mortgage Rate Is on a Downward Trend. Here’s How You Can Take Advantage of It.


If you’re currently in the market for a home or an apartment, then you are in luck.

According to the latest reports, the long-term US mortgage rates are on a steady decline, making the property market that much more appealing to first-time buyers and property investors alike. The steady decline brings the average mortgage rate closer to the lowest rate ever recorded, which dates back to 1971.

The downward trend is also bringing new opportunities for those who want to purchase a property. Prices are at their best and the low-interest mortgage options are making it possible for more people to own a property today.

The 7-Month Trend

The decline of average mortgage rates, particularly for long-term mortgage loans, has been observed for more than six months. It started with the strong comeback of the property market thanks to the increase of first-time buyers looking to invest in properties.

Property values across the country are returning to their level without breaking the psychological ceiling. The combination makes the market very attractive nonetheless.

Experts believe that now is the best time to take advantage of the many low-interest mortgage loans available.

While the trend will continue for several more weeks, a further decline in interest rates is not to be expected. The mortgage rates usually track the yield on the 10-year Treasury note, so it is easy to predict that the downward trend will soon level off. The yield recently dipped to 2.18% before climbing back to 2.21 a day later, signaling a possible floor that the market isn’t ready to break.

As mentioned previously, the decline in average interest rates affects long-term mortgage loans the most.

30-year mortgage rates are now sitting comfortably around 4%. Annual Percentage Rates or APRs for existing 30-year mortgage loans still vary, but the APRs for top mortgage loans are not too far from the actual interest rate thanks to more discounts and special offers.

Making a Smart Mortgage Decision

The key to taking advantage of the lower average interest rate is making a smart mortgage decision.

There are ways to further reduce the cost of owning a property by lowering the costs of using a mortgage loan. For starters, you can now rely on internet resources to find and compare the best New Jersey mortgage rates – or mortgage rates in your area – in a matter of seconds.

APRs are still the indicators to focus on when comparing mortgage loans. APRs represent the true costs of using mortgage loans better than annual interest rates. Lenders must include additional fees and charges when calculating the APR for their loans, which is why they show a clearer picture for potential property buyers.

At the same time, it is also possible to negotiate a better deal on the mortgage loan.

The market is as competitive as it can get today, allowing customers to have better bargaining power when comparing mortgage loans. Simply asking for a better quote can help you get a better deal on the loan of your choice.

Conventional approaches work too. Getting a mortgage loan preapproved and taking active steps towards improving your credit score before applying for the loan will also help reduce the costs of using the loan.

Opting for shorter mortgage terms also helps reduce the annual interest rate by a sizeable margin.

A Mature Market

According to mortgage experts, there is another reason why now is the best time to make property purchases using the best mortgage loans, and that is the maturing market. Mortgage loans are only one instrument you can use to make buying a new property easier and more affordable.

There are other instruments such as mortgage insurance that help make the process even more manageable.

We also have grants and financial aid to help first-time buyers enter the property market. Combined with homeowners’ insurance and other facilities available today, the total cost of becoming a homeowner can be kept at a minimum.

An increase in online resources is helping new buyers navigate the property market and making existing opportunities more accessible to many. There are no more hidden costs to worry about since every cost factor can be studied carefully.

The process of buying a property – including the property taxes and other fees associated with it – is also easier to navigate thanks to the wealth of information that can now be found online.

The downward trend in the home loans market is an opportunity too good to miss.


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