Conforming 30 year fixed rate mortgages are now averaging just a tad under 5.5%, while "Jumbos," those loans above $417,000, are now in the 6.5% range. Less than 6 months ago, these rates were closer to 6.3% and 7.2% respectively.
To put this in perspective, a $400,000 loan 6 months ago had a monthly payment of about $2476 (P&I). Today, the payment for that same loan amount would be $2271, a savings of $205 per month!
Another way to look at this is to consider the increase in your purchasing power. 6 months ago, a payment of $3395 would get you a loan of about $500,000. That same payment today would give you almost $37,000 more!
Home prices have come down, there are many nice houses for sale and interest rates are very low; a housing trifecta! You just might now be able to buy that house of your dreams! Call me to find out. After all, it doesn't hurt to look.
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