The Truth About Mortgage Rates
If you’re in the market to buy a new home and you’re not a cash buyer, you are tuned into mortgage rates. How much will it cost for you to borrow money? Today at 2 pm the Federal Reserve is expected to lower rates. So what does that mean for homebuyers? Not very much. You see the Federal Reserve doesn’t decide mortgage rates. Mortgage rates are influenced by the 10-Treasury, job reports, inflation and future expectations. However, if the outlook overall of the Federal Reserve is positive and further cuts are projected, it could help mortgage rates improve in time.
The bottom line is that today’s announcement is not going to have a significant impact on mortgage rates in the immediate future. So for homebuyers waiting for a drop, that’s not going to happen today or in the near future. Rates reached historic lows during the pandemic and have climbed to a more “normal” position in the past few years. The chart below shows 30-year mortgage rates since 1971. The historical average is 7.71% – higher than where we find ourselves today. Oh, may we add, we’re glad it isn’t the early 1980’s at 18%.
This historical rate perspective and the fact that Federal Reserve cuts don’t really impact mortgage rates provide insights for today’s homebuyers. It tells us that putting homebuying plans on hold waiting for a better rate, may not be the best plan. It helps to set expectations appropriately. It also tells us today’s rates are not historically high, even if they are higher than we’d like them to be.
Holiday Builders works closely with lending partner Coastal Loans to offer low-finance rates for qualified buyers. These low-rate programs assist with financing if you’re building a home from the ground up, or you’ve found the perfect move-in ready home. For all the details on rates, visit our Special Financing page.
Searching for your perfect Florida home? We’ve got you covered. Holiday Builders offers new single-family homes throughout Florida. We’ve been building new homes for nearly 43 years and we’re growing by leaps and bounds. We’re launching new communities all the time so check our website often for plans, pricing and location. We’re always building something wonderful at Holiday Builders. Where do you want to live?
Tags: Federal Reserve, Finance Your Home, Historical Mortgage Rates, Mortgage Rates
