NEW YORK (CNNMoney) — Happy holidays, homebuyers! You just got a very nice present.
Mortgage rates have hit record lows, with the interest rate on a 30-year, fixed-rate loan, the most popular choice of homebuyers, averaging 3.91% this week, according to Freddie Mac’s Primary Mortgage Market Survey.
That’s down from 3.94% last week, and is the lowest in the 40-year history of the survey.
Rates have fallen 0.9% since the beginning of the year. For a homeowner with a $200,000 mortgage, that means a savings of $1,200 a year, said Frank Nothaft, Freddie’s chief economist.
With rates at or below 4% for the last eight weeks, home sales are getting a boost, Nothaft added. Existing homes sold at their fastest pace since January last month, according to the National Association of Realtors, and new home sales edged higher in November as well.
How does mortgage rates affect us in Santa Clarita? Well just as stated in the above article rates are at an all time low. They inevitably have to increase and many predict we will see that rise sooner than later.
A 1% increase in Mortgage rates from 4% to 5% on a $400,000 home equals $238 a month…but equates to a staggering $85,000 over the course of a 30 year loan.
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