Last week mortgage rates fell to record lows again, which has been a recurring theme in 2011. According to Freddie Mac, a 30-year fixed mortgage rate fell to 3.94%, which matches the same record low from October 2011. Simultaneously, a 15–year fixed rate fell to the lowest it has ever been at 3.21%.
Is this the best time to consider buying? YES!
These record low rates equal big savings for new homeowners (or current owners who refinance). In 2006, anyone seeking a 15 year fixed mortgage would have been lucky to find a 5% rate.
Here’s the breakdown: a $200,000 home purchased in 2006 with a 5% rate on a 15-year fixed mortgage would have had a monthly payment of $1,582. Today at a 3.2% rate for the same price and 15-year mortgage, the payment would be $1,400. That’s a yearly savings of $2,184!!!
According to Jed Kolko, Trulia’s Cheif Economist, Rochester is a city to watch in 2012. He predicts a stronger housing market, job growth and fewer empty homes. He points out that despite blow after blow to the local economy due to Kodak what used to be other top companies, Rochester is still holding their own.