July Mortgage Rates Hit an All Time Low for Michigan Home-Buyers

For those in the process buying a home in Metro Detroit there’s a bit of good news coming down the wire.  Mortgage rates continued to fall again this week, reaching record lows for 30-year and 15-year fixed rate loans.  For 30-year fixed rate loans we saw a decrease of 0.04 to 3.49% according to data submitted by Freddie Mac.  15-year fixed rates came in at 2.80%, a drop from 2.83% the previous week.  This has been a consistent drop in mortgage rates for nearly 13 weeks running.

Frank Nothaft, chief economist for Freddie Mac, stated “Market concerns over the strength of the economic recover brought long-term Treasury yields to new lows this week, allowing fixed mortgage rates to reach record levels.”

What Lower Mortgage Rates Mean to You

When you’re listening to a run of economic data and hear the jabber on the news about European economics, it’s hard to imagine how it all impacts you at home.  However, economic issues around the world have an effect on a variety of markets in the U.S. - including real state.

As we continue to see borrowing costs fall, we see a rise in how much an individual can save when they search for real estate in Metro Detroit.  The rates don’t just apply to buying a new home in Michigan, but to refinancing a mortgage as well.

For example:  If you switch a 5% mortgage to a mortgage with a rate of 3.49%, that can reduce your monthly payment by $178 on a $200,000 home loan.  That equates to a little more than $2,000 saved in a year.

How to Take Advantage of Falling Mortgage Rates

Before you start shopping around for a dream home, take the time to get pre-approved with a Michigan mortgage lender.  This pre-approval process will examine your income to debt ratio and help you determine just how much home you can afford, the max amount a lender is willing to finance, and your overall wiggle-room for choosing a home.

With that information, you can begin talking to a metro Detroit real estate agent here at MarkZ Properties to help you find just the right neighborhood, school system, community, and dream home that you’ve always wanted.