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Realtor® Margaret Ludemann, Glen Homeowner

Mortgage interest rates: good news for home buyers and sellers

September 22, 2014 by Margaret Ludemann

A few weeks ago a potential buyer of a home in The Glen (in Glenview Illinois) told me that he was holding off buying a home until mortgage interest rates improve. I believed that was unwise, so I researched historical 30 year, fixed rate mortgage interest rates using Freddie Mac data. I grouped them into 5 year periods and calculated the averages. What did I learn…that recent mortgage interest rates are roughly half what they were 25 years ago!

The average rate in August (the most recent data available) was 4.12% for a 30 year fixed rate mortgage. This is a smidgeon higher than early months of 2013. Rates, however, have inched downward in each of the last 4 months; and that August rate of 4.12% is actually lower than the same month last year. So it is clear that home financing today is extremely low. While rates may bump along with modest increases and decreases in the short term, there is no evidence that they will become appreciably lower in the foreseeable future. In fact, it is likely that rates will eventually increase to more normal levels.

Interest rates matter…a lot…because they affect a buyer’s monthly payment and the total cost of financing over the period of ownership of a home. Every 1% rise in interest rates reduces buying power by approximately 11%. Obviously today’s low interest rates are beneficial to home buyers, but they are also good for home sellers. If buyers can purchase more house because of low interest rates, there are more qualified buyers for sellers’ homes.

If you are interesting in buying a home in The Glen or greater Glenview, please email me at Margaret.ludemann@cbexchange.com or call me at 847-401-1802.

Margaret Ludemann, Glen homeowner and @properties Realtor

Filed Under: Uncategorized Tagged With: @properties, buying power, fixed rate mortgage, Glenview, home buyers, home financing, home sellers, homeowner, interest rates, Margaret Ludemann, mortgage, Realtor, The Glen

Margaret Ludemann, Realtor®
Phone: 847-401-1802
Text: 847-401-1802
Email: margaretludemann@gmail.com

at properties logo

@properties
1517 Waukegan
Glenview, IL 60025

@properties and Realtor® Margaret Ludemann are not affiliated with and do not represent any for-profit business or not-for-profit organization associated with the development known as The Glen, in Glenview, Illinois, including but not limited to any retail or commercial or professional enterprise, developers or builders operating in The Glen, or homeowners associations therein. Realtor Margaret Ludemann, Glen Homeowner is affiliated with @properties.
Broker Reciprocity© 2013 Midwest Real Estate Data, LLC (MRED). The data relating to real estate for sale on this website comes in part from the Broker Reciprocity program of Midwest Real Estate Data, LLC (MRED). Real Estate listings held by brokerage firms other than @properties are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (a little black house) and detailed information about them includes the names of the listing brokers. Some properties which appear for sale on this website may subsequently have sold and may no longer be available. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

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