At the beginning of the year, experts were predicting that mortgage rates would remain low throughout 2017. It’s halfway through the year now and, happily, rates have actually dropped from their already low percentages earlier in the year. For buyers with excellent credit this is great news and, for those who might have otherwise been looking at higher than average rates due to having less credit history, it’s good news, as well.
Where Rates Are Headed
There’s been a lot of good news this summer for people looking for financing. The average 30-year fixed rate mortgage dropped to 3.89 percent in June. This marked a drop of 0.12 percent compared to the rates in May.
According to The Mortgage Reports, buyers have been able to increase the cost of the borrowing they’re able to afford by approximately $10,000 for every quarter-point mortgage rates drop. In addition to people borrowing to buy a home, people refinancing their loans have been benefitting from the dropping rates. Just about every type of loan has been affected so, if you’re looking to borrow to purchase Smyrna real estate, it’s a great time to be in the market for lending.
This beneficial trend seems to be continuing as the year goes on, but buyers haven’t been waiting to see if rates go even lower. The low rates aren’t guaranteed to last, so borrowing activity has been strong among buyers.
Dealing with the Complexities of Financing
The best first step you can take if you’re shopping for real estate is to get prequalified for a loan. This isn’t a guarantee that you’ll get the money—the house you want to purchase and other factors play into that— but, based on the lender’s criteria, they can confidently give you a loan amount that you should qualify for. This makes it a lot easier to narrow down the houses you’re looking at to those you can comfortably afford.
Once you have a price range, we can help you find a home in Smyrna that fits your budget and your lifestyle. Smyrna is a very diverse market so, even if you’re a first-time buyer and want a simple house to start out with, there are excellent quality properties available in the Smyrna market.
If you’re not sure how to go about getting prequalified, call us and we can connect you with loan experts who can get you through the process.