Mortgage rates have hit a record low – 3.19%, according to most recent data. And, with record low rates, it’s a prime time to invest in real estate.
The Mortgage Bankers Association (MBA) reported that the total volume of mortgage applications rose 5.1% last week and that the rate for a 30-year fixed-rate mortgage with loan balances (up to $510,400.00) fell .07% during the same time period.
Applications to refinance existing mortgages rose even more to 12%, a 107% percent hike year-to-year, the MBA said.
“The continued decline in mortgage rates pushed up our refinance volume forecast by about $100 billion,” said Doug Duncan, Fannie Mae’s chief economist. “At the current mortgage rate, we estimate that nearly 60% of all outstanding loan balances have at least a half-percentage point incentive to refinance.”
“Purchase activity remains relatively strong, despite the continued economic uncertainty and high unemployment caused by the ongoing pandemic,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
The reasoning is simple. Record-low mortgage rates make real estate more attractive – and rightfully so. Investors know an opportunity when they see it and this one is staring them straight in the face.