Are Low Mortgage Rates Bad For You?

Money on a calculatorThe Freddie Mac Primary Mortgage Market Survey is reporting that rates for 30-year fixed mortgages have gone down to 3.78 percent. In comparison, last year, mortgage rates were at 4.28 percent. The lowest ever recorded mortgage rate is 3.31 percent, which was from November 2012.

So what does any of this mean for Austin mortgages?

Mortgage rates measure the amount plus interest you pay back per payment period. Ideally, the lower the rate, the lower that you will end up paying. For a fixed rate mortgage, the interest on the loan payments cannot be adjusted.

The lower the rates, the less money you have to pay back to the banks.

That’s why lower rates are exciting for homebuyers.

It’s a less risky investment the lower the interest rate is. Ultimately, anyone interested in Austin mortgages you will reap more reward from it by placing more money in your pocket compared to those saddled with higher investment rates.

Lower investment rates are also a common stimulus function in order to spur home purchases. The real estate market often gauges the level of the American economy as a whole. People always need homes. The less people that are buying homes, the worse the economy might be doing. By lowering interest rates, buyers would hypothetically look at rates and make the purchase before they go up.

This comes at a sacrifice to banks, who have to make money somehow. As soon as the housing market is sufficiently stabilized, rates will go up. As soon as rates go up, people may continue buying or people may stop, thus necessitating another decrease.

There is a bit of strategy that is required in purchasing a home, but nothing that your American Capital Mortgage Group representatives can’t help you out with. We’ll be able to guide you through fixed-rate Austin mortgage process and more. We don’t offer just fixed-rates as well. Talking with your representative can let you know about the varieties of mortgages our company can help you with.

Get in contact with American Capital Mortgage Group Today and get your process started today.