The world is a bit crazy right now keeping many of us distracted from the current record low mortgage rates. Freddie Mac has reported the average 30-year fixed mortgage rate dropped to record lows over the last few weeks, all the way down to 2.98%. Yes, thats below 3%, right now. Last week’s reported rate reached the lowest point in the history of the survey, which dates back to 1971, but now we are even lower (See graph below):

What does this mean for buyers?

This is huge for homebuyers in Northern VA. Those currently taking advantage of the increasing affordability that comes with historically low interest rates are winning big. Move.com notes:

“Summer home buying season is off to a roaring start. As buyers flooded into the market, realtor.com® monthly traffic hit an all-time high of 86 million unique users in June 2020, breaking May’s record of 85 million unique users. Realtor.com® daily traffic also hit its highest level ever of 7 million unique users on June 25, signaling that despite the global pandemic buyers are ready to make a purchase.”

Real estate sales are booming in Northern VA with buyers capitalizing on today’s record low mortgage rates. The chart below shows the average monthly mortgage payment decreases significantly when rates are as low as they are today.

Savings can add up significantly over the life of a home loan. It also means that qualified buyers may be able to purchase more home for their money. Maybe that’s a bigger home than what they’d be able to afford at a higher rate, an increasing need considering the amount of time families are now spending at home.

Bottom Line

If you’re in a position to buy a home this year, contact me soon to get the process started while rates remain at record lows. No one knows for sure when they will go back up.