In the brink of the coronavirus pandemic and the economic downturn mortgage rates, as of May 15th, have hit yet another record low. The combination of unprecedented declines in retail sales, and investors leaving the stock market and moving towards bonds and other investment options has lowered yields and subsequently the mortgage rates.
Mortgage rates are not standard across the board and there is no perfect way to calculate them. Some lenders are offering rates as low as 2.75%-3% while others are sticking with rates prior to the crisis.
The most common type of mortgage is the 30-year fixed mortgage and the countrywide average is now the lowest it has ever been at 3.09%. Of course, not every borrower who wants to buy a home or property is going to be given such a low rate. Lenders give these low rates to individuals with the strongest cases and also they will be more diligent with home buyers and investors who ask for a loan. However, either way you look at it, the rate you get (perfect case or not) will be better than it was this time last year since the lowest rates at that time were still higher than what they are today. What does this mean for an investor? It means, if you are able to get a loan, call a realtor or real estate agent to find out, (www.aminvali.com), then you probably could buy now to collect rental income or buy now to sell at a profit later.
Demand is from buyers and investors has started to increase over the past couple of weeks and supply will (in the short-term) will not be able to keep up. Serious investors (that includes you) would be looking to buy homes, multi-family properties, and commercial properties before there is nothing left to buy at such low rates or before the rates go back up (www.aminvali.com).