Are you planning your retirement?
Is Boca Raton on your next destination list?
Planning to buy a house to settle?
Well if you answered any of the questions with yes then it is the best time to do so. The mortgage rate in US falls for the first time after 5 months. This means you can buy a house in Boca Raton at a very low rate. Golden opportunities for the buyers as well as for those who want to sell their house.
According to most of the analyst, this is the best time to jump in the real estate market.
I know you don’t want to miss this chance. Keep on reading to know how the drop in mortgage rate actually affects the market.
What is a mortgage rate?
Starting from the beginning, the mortgage rate is actually the amount of interest charged on the mortgage. When talking about mortgage rates we are specifically talking about real estate.
How drop in mortgage rate affects real estate:
The mortgage rate is the prime indicator of property values. If mortgage rate rises it means a rise in your property value. If it decreases the value also decreases.
But what exactly do you mean by low mortgage rate or high mortgage rate? One more question is how it affects the real estate market?
The answer is not that tricky it’s simple. When you have a low mortgage rate the market starts bustling with activity. The buyers have enough chance to buy the houses and properties. The lower the rate the less they have to spend in interest. This means they have money to spend on properties. If you take a clear look it is good for the whole market. On the other hand the higher the rates the more they have to give in interest. The less money the buyers have to spend. This not only affects one or two people but the whole market comes to a halt. The sellers have to lower down the prices in order to sell their properties. The prices of everything come down.