Mortgage Interest Rates are so low right now, that from a monthly payment standpoint, home prices would have to drop 22% to have the same monthly payment if mortgage rates were 7%. At the AVERAGE national interest rate right now, a P&I payment on a $150,000 home loan would be $785.19 a month.
If mortgage interest rates rose to just 7%, then a $785 monthly payment would only allow for a $118,000 home loan.
Right now just might be the best time EVER to lock in a mortgage rate if you’re looking to buy or refinance Utah Real Estate. Interest rates overall are at near record lows, and interest rates for 15 year loans are at their Lowest Rate EVER. Here is the latest on the mortgage market from the Inman News. According to them, mortgage rates are rising, and likely to continue to rise.
Rates on 30-year fixed-rate mortgages were near record lows this week as instability in financial markets overseas had investors seeking safety in bonds and mortgage-backed securities, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey.
Rates were headed back up today, however, as renewed confidence in markets had investors moving funds back into riskier investments.
Freddie Mac’s survey showed rates on conventional, conforming 30-year fixed-rate loans averaging 4.78 percent with an average of 0.7 point for the week ending May 27, down from 4.84 percent a week ago. That's the lowest rate since the 4.71 percent average during the week of Dec. 3.
The 15-year fixed-rate mortgage averaged 4.21 percent with an average of 0.7 percent, down from 4.24 percent a week ago and 4.53 percent at the same time a year ago. That’s the lowest rate registered since Freddie Mac began tracking 15-year loans in August 1991.
These 15 year fixed mortgage rates are so low that, a house payment with a 15 year fixed payment would be almost the same as a 30 year fixed amortization schedule at a “normal” interest rate.
A 4.21% interest 15 year P&I payment on a $150,000 home loan, would be $1,125.38
A 30 Year fixed payment at 8.25% interest would be $1,126.90.
It might not be a bad time to refinance into a 15 year fixed mortgage and pay your house off much more quickly. Now there’s an idea. Pay your house off.