Wisconsin mortgage rates at or are close to an all-time low right now. In fact, a 30-year loan offered at a fixed rate declined to below 4.0 percent as of January 2015. Just over a year later, the mortgage rates are still fluctuating at a rate of 3.7-3.9 percent.
No one knows how long these low rates will continue. After all, national rates were once as high as 8 percent or more according to Federal Housing Administration data back to the early 1990’s. Therefore, anyone who wants to purchase a home right now at these low APR rates might want to take action now. However, there might be one question concerning home buying that is lingering in your mind.
What does a low interest rate say about our 2016 economy?
If you are afraid to buy right now, you’re not the only one. Many people are hesitant because they are still uncertain about whether or not economic conditions have permanently improved. However, a low interest rate does not mean that we are still in a recession. In fact, you can find plenty of evidences all across the nation that the economy is improving. One of those signs of a better economy is the fact that median new home prices are about 23 percent higher than they were a little more than a five years ago (no month specified in data set but probably is December figures). Furthermore, the prices of homes were also about 9.9 percent higher in December 2015 than in in December of 2014. Furthermore, in spite of a gradual climb in house prices, the U.S. Census Bureau reports an increase in home purchases of approximately 14.5 percent from 2014.
Keep in mind that some of the above numbers might not account for inflation. However, it does signs of financial stability. As the real estate market starts to recover, it will eventually cause banks to follow suit. Once they see people are buying homes again, it will cause those interest rates to climb again. If you have a steady income right now, this could possibly be your last chance to lock in low interest rates before the bank catches on to the increase in home values.
Where in Wisconsin should I buy a home?
Wisconsin interest rates varies from location to location and for type of loan including FHA, VA or private loans. However, the rates are all still quite low and comparable from one another for most WI metropolitan areas. Therefore, you have your pick of places you want to live. Â To give you an idea of what the 2016 rates are, figures for select small and large metropolitan cities are shown below. These Wisconsin localities represent places within all four directions on the map, and the interest rates shown below are accurate as of February 2016.
Eau Claire – This city is in northwest Wisconsin near Lake Hallie, Lake Wissota, and Chippewa Falls. Fixed rate 30-year mortgages are currently at approximately 3.81 percent. This is only slightly than the national average of 3.71 percent. Likewise, the 15-year fixed rate loan is 3.19 percent APR, which is only slightly higher than the 3.14 percent U.S. average. This is the lowest rate since August 2015 when Eau Clair Mortgage rates were just above 4 percent.
Green Bay – Situated off the bay of Lake Michigan, this city is found in Northeast Wisconsin. Housing costs are reported as being about 3 percent higher than in Milwaukee. However, they are still far less expensive than in Los Angeles, New York or other large metropolitan areas. Rates for a 30-year fixed rate loan range from about 3.5 percent to just over 4.15 percent. It is possible to find rates as close as possible to the national average, with some lenders providing rates more than the U.S. average and others less than it.
Appleton – The 30-year fixed rate mortgage is offered at an APR of 3.83 percent, which is just a bit higher than the national average. The 15-year rate is much lower – only 2.9 percent. By the way, this city is about 30-40 minutes south of Green Bay as heading down highway 43 to Milwaukee, and it has a population of about 73, 596 as of 2013. It is a highly urban city, but it does run along the Fox River. It is part of the Fox River Valley, which includes Appleton, Kaukauna, Neenah, Menasha, Grand Chute and other nearby cities.
Milwaukee – The average interest rates for a 30-year fix rate loan is 3.85 percent, and the 15-year fixed loans are typically disbursed at a 3.18 APR. Both of these are slightly higher than the national average, but they are still considered some of the lowest rates compared with the FHA loan rates dating back to 1992.  This city has Lake Michigan as its western border, which is where some of the most valuable homes are.
Madison – This metropolitan area is a strip of land that sits between Lake Mendota and Lake Monona and is about an hour and a half west of Milwaukee. If you know anything about Madison at all, you might be surprised that the 30-year fix rate mortgage right now is at 3.63 percent, which is lower than the national average. The 15-year fixed rate one is also lower than the U.S. average, and it is currently 2.88 percent. This city does not necessarily have the least expensive homes, but apparently it does have affordable rates that could make it easier to buy.
Of course, measuring Wisconsin Mortgage rates in select cities might not be enough to convince you to move to a different location. However, knowing how much it will cost you to buy your house is probably one of the most important considerations you will make.
2 Point Highlight
Wisconsin mortgage rates at or are close to an all-time low right now.
In fact, a 30-year loan offered at a fixed rate declined to below 4.0 percent as of January 2015.
