{"id":47147,"date":"2020-08-10T16:45:31","date_gmt":"2020-08-10T23:45:31","guid":{"rendered":"https:\/\/www.movoto.com\/blog\/?p=47147"},"modified":"2022-04-19T23:13:12","modified_gmt":"2022-04-20T06:13:12","slug":"historically-low-mortgage-rates-is-this-a-good-time-to-buy","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/historically-low-mortgage-rates-is-this-a-good-time-to-buy\/","title":{"rendered":"Historically Low Mortgage Rates: A Good Time to Buy?"},"content":{"rendered":"\n\n<p>For some, this moment represents a tremendous financial opportunity. With rates this low, homeowners have the potential to save upwards of $100 per month on their mortgage payments.<\/p>\n\n\n<p>But before you put a <a href=\"https:\/\/www.movoto.com\/blog\/how-much-money-do-i-need-for-a-home-down-payment\/\">down payment<\/a> on your dream home, it\u2019s important to understand exactly what\u2019s happening with these low mortgage rates. Here\u2019s a clear look at the big picture.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Why are Mortgage Rates so Low Right Now?<\/h2>\n\n\n<p>In response to the pandemic, the Federal Reserve cut the federal funds rate\u2014the rate at which financial institutions lend money to each other.<\/p>\n\n\n<p>This lower federal funds rate creates less financial burden for banks. As a result, many financial institutions are able to offer a significantly lower mortgage rate. The ultimate objective of this all-around rate reduction is to energize the economy in two ways.<\/p>\n\n\n<p>First, current homeowners can use low mortgage rates as an opportunity to refinance at a better rate.<\/p>\n\n\n<p>Second, prospective buyers are motivated to seize this opportunity while they can. Lenders have made it beneficial for buyers to move quickly. This keeps the real estate market robust even in a challenging economy.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Are House Prices Dropping, Too?<\/h2>\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-47149\" src=\"https:\/\/movoto.kinsta.cloud\/wp-content\/uploads\/2020\/08\/Blog-LowMortgageRates.jpg\" alt=\"\" width=\"781\" height=\"399\" \/><\/p>\n<p><a href=\"https:\/\/www.movoto.com\/mortgages?utm_source=movoto&amp;utm_medium=blog&amp;utm_campaign=article_link\">Low mortgage rates<\/a> are accomplishing exactly what they are meant to accomplish. Many individuals and families are taking this opportunity to buy now while mortgage rates are low.<\/p>\n\n\n<p>Because the demand for real estate has remained fairly consistent, prices have, too.<\/p>\n\n\n<p>While that may be disappointing for aspiring homeowners, the fact is that both buyers and sellers stand to benefit in the current market. Sellers get a good price and buyers get an excellent mortgage rate on a high-value home.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is Now a Good Time to Buy a House?<\/h2>\n\n\n<p>So, what\u2019s the verdict? Is this a great time to buy, or should you wait?<\/p>\n\n\n<p>If you are financially prepared for the responsibility of homeownership, this is an excellent time to get serious about purchasing.<\/p>\n\n\n<p>At the current rate, the average homeowner in America stands to save more than $50,000 over the life of their loan. If you live in a coastal area where the property is priced higher, you can expect to save even more.<\/p>\n\n\n<p>However, be aware that not everyone will get that incredible 3 percent rate. Even as home sales remain steady, lenders have seen mortgages falling into delinquency at record highs. This has led many financial institutions to establish higher standards for home loans.<\/p>\n\n\n<p>The bottom line: If your income is secure and you\u2019re ready to buy a house, there\u2019s no reason to wait. Opportunity is knocking.<\/p>\n\n\n<p>Not sure where to start? Our agents will be more than happy to help you find your dream home. Check <a href=\"https:\/\/www.movoto.com\/for-sale\/new-7\/?utm_source=movoto&amp;utm_medium=blog&amp;utm_campaign=article_link\">Movoto\u2019s <\/a>listings for beautiful properties in your area.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mid-July brought us the lowest mortgage rates we\u2019ve seen since Freddie Mac began tracking rates 29 years ago. On July 13th, 30-year fixed mortgage rates dove to an average 2.98 percent. That rate has held fairly steady since, with current averages hovering around 3 percent.<\/p>\n","protected":false},"author":3,"featured_media":47150,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[223,63,41],"tags":[49,168,111,85,86],"class_list":["post-47147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying","category-finance","category-market-trends","tag-buying-a-home","tag-covid-19","tag-mortgage","tag-mortgage-loan","tag-mortgage-rates","post--single"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Historically Low Mortgage Rates: Time to Buy? - Movoto Real Estate<\/title>\n<meta name=\"description\" content=\"But before you put a down payment on your dream home, it\u2019s important to understand exactly what\u2019s happening with these low mortgage rates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.movoto.com\/blog\/historically-low-mortgage-rates-is-this-a-good-time-to-buy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Historically Low Mortgage Rates: Is This a Good Time to Buy? - Movoto Real Estate\" \/>\n<meta property=\"og:description\" content=\"Mid-July brought us the lowest mortgage rates we\u2019ve seen since Freddie Mac began tracking rates 29 years ago. On July 13th, 30-year fixed mortgage rates dove to an average 2.98 percent. That rate has held fairly steady since, with current averages hovering around 3 percent.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.movoto.com\/blog\/historically-low-mortgage-rates-is-this-a-good-time-to-buy\/\" \/>\n<meta property=\"og:site_name\" content=\"Movoto Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MovotoRealEstate\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-10T23:45:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-20T06:13:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.movoto.com\/blog\/wp-content\/uploads\/sites\/2\/2020\/08\/Blog-LowMortgageRates.jpg\" \/>\n<meta name=\"author\" content=\"Movoto Editorial Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Historically Low Mortgage Rates: Is This a Good Time to Buy? - Movoto Real Estate\" \/>\n<meta name=\"twitter:description\" content=\"Mid-July brought us the lowest mortgage rates we\u2019ve seen since Freddie Mac began tracking rates 29 years ago. 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