The past several months have seen mortgage interest rates on all types of mortgages (fixed and adjustable rate) falling to levels unseen since the latter part of 2013. For potential buyers interested in purchasing real estate in San Clemente, falling mortgage rates are welcome news as loans are getting cheaper with regards to monthly payments and total interest owed over the life of the loan. What is incredible is that mortgage rates on a 30-year fixed loan are getting close to the magic 4% threshold.
According to the most recent mortgage data from CNN Money, the average interest rate on a 30-year fixed mortgage is 4.08%; this figure is down sharply from last week’s average rate of 4.25%. For buyers looking for a shorter term mortgage that can afford the higher monthly payments, the 15-year rate is also down – 3.17% versus last week’s 3.23% interest rate. In fact, it is currently a better idea from an interest rate perspective to get a 15-year fixed loan than it is a 5-year Adjustable Rate Mortgage; the current interest rate for a 5/1 ARM is 3.3%, and you only have this low rate for 5 years versus the 15 on the fixed rate loan.
Buying a San Clemente home or San Clemente condo is always a good investment, but these low interest rates make buying one in today’s market an even better option for buyers looking to finance their real estate purchases. As the economy continues to improve, we will see mortgage interest rates begin to rise back into the 5% range, perhaps by the end of this year. If you are still on the fence about purchasing your new San Clemente home, don’t wait too long or you will miss these great mortgage deals.