Nobody wants to pay more for anything if they don’t have to. That’s why it is so important to shop around for the best price on cars, computers, and even home mortgages. While the U.S. has been in the midst of a historically low interest rate environment for well over a decade now, is it possible that rates on home loans could ever fall below 1%, or even to 0%?
Typically, mortgage rates will track the direction of the 10-year U.S. Treasury note – and over the past few weeks, the yield on the Treasury note has gown down. Because of this, mortgages – and in turn, homes – have become a bit more affordable for both first-time buyers and existing purchasers.
In fact, according to the Mortgage Bakers Association, home mortgage applications have risen by roughly 9% as compared to one year ago (between August 2018 and August 2019). So, given the volatility of the stock market and the interest rate environment, could we see rates in the range of 0% any time soon.
The answer to that is unlikely. But even so, it may still be easier for home buyers to finance their purchases over the coming months. With that in mind, there is a long list of different types of mortgages available in today’s home loan market – and because of that, it is easy to get sidetracked by the promise of low rates when the reality is that there are a number of other key factors that go into determining which mortgage is right for you.
These criteria can include the amount you are borrowing, the amount of your down payment (especially as it pertains to the total price of the home you are buying), and whether or not the mortgage rate is fixed or variable.
If you’d like to find out how much you qualify for a mortgage, please contact us or fill out our online short application. We make it easy to understand the different home loan programs that may fit your specific situation – and we make the process easy and convenient. So, visit Galaxy Mortgage today to take the first step in owning your next (or your first) home.