These record low rates make this the best time for Americans to buy or refinance a home. For those who qualify, this could save potentially thousands of dollars a year.
According to the Washington AP, ” mortgage rates are low largely because investors are worried about the U.S. economy. As a result, they’re moving their money out of stocks and into U.S. Treasuries.”
With the majority of homeowners paying over 5% on government-backed mortgages, these low rates have the potential to help a lot of people struggling with their current mortgage or looking to be first-time buyers.
With all the savings from lower interest payments people have more money to spend on the principal price of a home. This enables them to look for homes with upgraded features that they normally would not be able to afford. By buying nicer homes people are not only helping the economy, but they are able to enjoy a little luxury too!