Mortgage Rates and the Ability to Buy

Dated: May 22 2020

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Recently Fannie Mae and Freddie Mac released their mortgage rate predictions for the remainder of the year.  Both organizations believe that rates for 30 year loans will fall to 2.9% by fall.  What has happened since their prediction makes it look like reality.  This week we've seen rates drop to 3% for good buyers with conventional loan products.  Chase Bank this week offered exceptional buyers who have 800+ credit scores, high equity in their homes and low debt 30 year new mortgage (not refinance) rates at 2.75%. 

Rates like these have been unheard of in the last 40 years.  2.75% was a great number for a 15 year loan, but that number on a 30 year loan changes the game for many buyers. An example would be a first time buyer who is approved at 3.9% for a $150,000 loan. The change to a 2.9% loan gives them an additional $36,000 in purchase power. An exceptional buyer at 2.75% would get even more. What a way to move the market forward.

Don't miss out on your chance to buy with these great rates.  Your dream house may have just become attainable.

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Maysonya Morrison

I'm a Michigan girl who loves four seasons, water, the Lions (no, I don't have a back-up team), and Detroit. My husband Brad and I met while serving in the US Air Force. That service had us living i....

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