While the COVID-19 (coronavirus) pandemic continues to change on a day-to-day basis, so do interest rates as they relate to credit cards, savings accounts, emergency bank lending and, yes, mortgages. Interest rates are continuing to fall, and that means buying power is at an all-time high. This allows buyers to qualify for their desired price range and for sellers to get top dollar for their home.
In March, The Federal Reserve announced it was dropping federal fund rates between 0% to 0.25%, in an effort to stimulate the economy, according to PrimeLending.com. While this rate cut does not directly impact 15- and 30-year mortgage rates, they tend to trend directionally with federal fund rates.
In fact, Freddie Mac released the results of its Primary Mortgage Market Survey, showing that the 30-year fixed-rate mortgage averaged the lowest rate in the survey’s half-century history. As of March 5, 2020, mortgage applications had increased 10% year-over-year and showed no signs of slowing down.
“As of today, interest rates remain at or near historically low levels,” Green Brick Mortgage Production Manager Teresa Mitchell said. “Low interest rates give you more buying power making now a great time to purchase a home from The Providence Group while getting more bang for your buck.”
For example, according to Freddie Mac, the average historical national rate in 2018 was 4.94%, which made the average monthly mortgage of a $250,000 home $1,266, not including taxes or mortgage insurance.* Based on a 3.25% interest rate in 2020, the mortgage amount for a $250,000 home would be $1,033 per month.**
To continue to help interested homebuyers in their search, The Providence Group is offering video and virtual tours of its new homes and communities throughout Atlanta, as well as private, in-person onsite appointments. Known for building well-crafted new homes that make it easy for homebuyers to Make Space for Life and add their own personal touch while focusing on the things that matter most.
Located in some of Atlanta and the surrounding area’s most sought-after communities, homes from The Providence group are timeless, low maintenance and long-lasting. Each is intelligently crafted and ready to be personalized, so you can move in with ease and feel right at home.
For more information regarding new homes throughout Atlanta and the metro area from The Providence Group, visit www.TheProvidenceGroup.com. Call or text the New Home Navigator at 678-472-0411 to schedule a private showing.
*This summary is based on a $237,500 loan amount on a loan term of 360 months with an interest rate of 4.94% and an annual percentage rate of 5.211%. All loans subject to credit approval. Rates and fees subject to change.
**This summary is based on a $237,500 loan amount on a loan term of 360 months with an interest rate of 3.25% and an annual percentage rate of 3.371%. All loans subject to credit approval. Rates and fees subject to change.