A big green light is lighting up for people looking to buy a home, or sell one.
Mortgage rates are down to their lowest point this year and that could unleash pent up demand.
“Theres a lot of pent-up demand. A lot of people want to buy houses and this demand is causing rates to go down,” said financial planner Mitch Kramer.
Freddie Mac's latest Primary Mortgage Market Survey shows that the average rate on a 30 year mortgage went down to 6.58 percent from 6.63 percent last week.
Mortgage rates are not directly connected to interest rate decisions by the Federal reserve and the drop in mortgage rates comes as the wait continues for the Fed to stimulate the economy with a rate cut of its own (now expected to happen, perhaps as many as three times later this year) but Kramer says the new mortgage rates, still higher than mortgages of just a few years ago, could help home shoppers hit their “break even” sweet spot to go ahead and buy.
“If the borrowing cost is cheaper, then anything finance related becomes cheaper,” he said. “And your dollar will go further because you’re not spending as much money for interest costs. So you can spend more on goods and services, which helps the overall economy.”
Photo: The Image Bank RF