About this time a year ago, I was pointing out that with Houston real estate mortgage rates at near historic lows, the opportunities for first time home ownership had seldom been better. That was what was happening a year ago, but this year is different. I can’t tell you that mortgage rates are at near historic lows. That’s because last week, mortgage rates hit absolute historic lows! You can check out the latest mortgage rates on our Mortgage Info page.
According to Freddie Mac’s Primary Mortgage Market Survey, 30-year fixed-rate mortgage rates (FRM) averaged 3.62%. There were other bottom-scraping stats in the same report, including the average of 0.8 point (with an asterisk that points out that closing costs vary); but the real headline-maker was that further drop in mortgage rates. Down from 4.6% a year ago. That’s an all-time low in Freddie Mac records – and they go back to 1971.
“Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows,” said Freddie Mac’s chief economist, Frank Nothaft, quoted in the July 5 release.
You can bet that Houston real estate buyers and sellers are listening. If previous talks of a housing recovery haven’t been enough to motivate first-time buyers or investors to jump into the market, mortgage rates like these often do the trick. If you are home seller, weighing the best time to sell your Houston home, this might be the signal you’ve been waiting for. Record-breaking low mortgage rates can help breathe life back into the Houston real estate market, including Houston home sales. Properties that are properly priced and well-marketed stand the best chance of taking advantage of an invigorated market.
Every market is different, and often varies from neighborhood to neighborhood. Contact Kevan Pewitt and the Houston Prime Realty team, if you want to talk about market updates and how they might affect your individual outlook. Kevan Pewitt is an experienced Houston real estate agent and Realtor in Houston. Learn more about Kevan Pewitt here. Learn more about Houston Real Estate on our home page.