2011 in Review: The Year of Rock-Bottom Home Interest Rates
There was no shortage of headlines this year when it came to housing — hints (and false hints) of a recovery, huge unsold inventories, an unfolding crisis in Europe that threatens to undo everything gained recently on this side of the pond. But if we had to pick one headline that mattered the most to Texas families, it was this: 2011 featured the most unprecedented, most buyer-friendly, and most obscenely low home interest rates we’ve seen in a long, long time.
According to The Dallas Morning News:
Mortgage rates remain near decades-low levels, and even the most pessimistic forecasts don’t foretell a big run-up in rates. That’s good news, because there are enough obstacles these days to buying a house — from tougher mortgage qualification standards to home appraisals that miss the mark.
The average long-term, fixed-rate mortgage is still going for less than 4.5 percent. Not too long ago, anything under 7 percent was considered a steal.
Current mortgage rates are so low that some housing economists worry that recent homebuyers or refinancers will be reluctant to move a few years from now because they won’t want to give up their absurdly cheap interest rates.
Home interest rates like these make life easy for both potential home-buyers and current homeowners in a couple of ways:
First, they make housing more affordable, which makes it both easier to buy a home and, therefore, easier to sell as well. In a sluggish market like the one we’ve been stuck in for the past few years, this is excellent news. And here at Texas Lending, we’re proud to continually offer just about the lowest rates you’ll find anywhere in the Lone Star State on Austin home loans, Dallas home loans and Houston home loans.
Similarly, low interest rates also lower the cost of refinancing your home. As we’ve mentioned in the past, refinancing can give homeowners an enormous amount of much-needed flexibility during an economically uncertain time. And again, you won’t find more affordable Austin refinance rates, Dallas refinance rates or Houston refinance rates than you will at Texas Lending.
Rates will continue to stay low well into 2012, but this historic buyer’s window can’t last much longer. Contact us if the time is right for you to buy or refinance before rates begin to rise.