When Home Creations‘ owners first started building homes, they received a 21% construction interest rate for their first home. I bought a new home in 1981 and locked in an 18% interest rate for a primary residence. I can remember how grateful I was when we refinanced at 12%.
In the early 2000’s, everyone was thrilled that rates dropped below 10%. Then, in 2004 rates began to go below 7%. But, no one ever thought they would go below five. Currently, rates are below 4% on a fixed 30 year loan, and we have closed some as low as 3.5%.
What does that mean to buyers? Over the course of your loan, it can mean thousands of dollars in interest you won’t pay, but immediately, it means hundreds of dollars a year less in your monthly payment. A drop of 1 point can mean about $90 a month on your monthly payment, on a $150,000 loan. It also means you can qualify for more house than you would if rates were higher.
So, the big question hanging out there is: “How long will rates stay low?” You would have to be a psychic to answer that question, but usually, “what goes down will go up.”
All this to say, BUY NOW! Home prices across the nation are rising, which is good for home owners, but buyers need to purchase now or expect to pay more in the coming months. Low interest rates and existing lower home prices equals the perfect combo for buyers. Don’t miss out.
– Anita Brown, Director of Sales and Marketing
Home Creations | Oklahoma's Largest Home Builder 