Mortgage rates fell to the lowest level in nine months to start the new year and that is a welcome sight as we prepare for the Spring buying season.
Lower mortgage rates and gas prices have a way of jump starting the housing market. The second half of 2018 brought higher mortgage rates as the economy continued to improve. Home buyers are sensitive to rates as a 1% increase in rates will increase the monthly payment by about 10%. Some buyers are choosing a 20 yr or 15 yr term if they want to be mortgage free sooner than the standard 30 yr loan. Your mortgage lender can help you find the right loan program to produce the payment that you are comfortable with for the future. When starting your home search, consider getting pre-approved before going out looking at homes. It is more productive to shop with confidence for a home in the right price range. It is never too soon to get a solid plan together with your lender so that you can be clear on the process and be ready when the perfect home comes along.