Idaho Mortgage Interest Rates
The 2019 real estate market in Southeast Idaho has been booming. Sellers are cashing out on equity that they have earned over the years and buyers are coming from all over looking for the perfect place. If you have been looking for a home in the area, you may have experienced the frustration of bidding wars, low inventory, and fast moving homes. One of the main reasons that the market has been like this is the mortgage interest rates.
What is a mortgage interest rate?
When purchasing a home, your lender is willing to provide you with the funds with an agreement that you will pay interest over a certain amount of time. This interest rate will be reflected in the monthly payment. Just like when getting a car loan, a business loan, or a credit card; the interest rate determines how much “extra” will need to be paid in excess of the principle amount of money borrowed. The interest payment will cease once the loan is paid off in full.
Home Buying Power and Mortgage Interest Rates
When buying a home, the monthly payment will be affected by the current interest rates. Your mortgage lender will inform you what loan programs fit your needs and determine what interest rate your home mortgage loan will be. This interest rate will have a big impact on what you will be qualified to buy. For example just a one percent interest rate change will result in over a $10,000 difference in what you can qualify for. Imagine a change of 5% interest rate and the effect that would have on the real estate market.
Idaho Mortgage Interest Rates
On average the mortgage interest rates throughout the united states have declined over the past 20 years. Home mortgage rates have been known to change with an interest rate of over 14% in the 80’s to as low as 3.5% in current rates. Current interest rates for a 30 yr fixed mortgage are as low as 3.5% in the area. From summer of 2018 to fall of 2019 interest rates have declined around 1% alone. This is a significant change and directly affects the Idaho real estate market. Interest rates are affected by changes in the economy, governmental influence, and sometimes even natural disasters. Changes in the mortgage interest rates are not easily predicted and can change quite rapidly.
What Does this Mean?
With current interest rates at a relative low, this improves buying power. There are plenty of buyers in the market and homes are moving quickly. If you are a home seller you will be able to get a great purchase price from your home, and if you are looking to purchase in this market you can take advantage of such low rates. If you wait out the market and purchase in a year or more from now there is a risk that the interest rates will be higher. There is no better time to be involved with buying or selling real estate.
Rigby Homes Idaho Falls Homes Rexburg Homes
Fill out the form below to start the process of a mortgage loan qualification.
Idaho Mortgage Lenders
Contact Dustin Hawkins with any questions.