Average U.S. mortgage rates started 2021 near historic lows and have hovered in that vicinity through January. That news has likely reached and encouraged your clients, but emphasizing in real terms how much it will benefit their bottom line can provide valuable context for their homebuying decision.
The average rate for a 30-year fixed-rate mortgage was 2.77% as of January 21, according to Freddie Mac. The average was 3.62% in January 2020 and 4.46% in January 2019, 85 basis points and 169 basis points higher, respectively, than the current rate. A buyer who purchases a $300,000 home at the average rate today would save just over $100,000 during the mortgage term compared to purchasing the same home two years ago—and the monthly payment would be almost $200 less.
Limited housing supply and low mortgage rates have contributed to increased competition and home prices, but the cost of borrowing money for a home is currently so low that buyers may be able to afford more than they would have one or two years ago.
Monthly mortgage rate averages stretching back to 1971 are available in MarketViewer (texasrealestate.com login required), the powerful data and market statistics tool available exclusively to Texas REALTORS® members. Use that data to show your clients the additional buying power they can now take advantage of thanks to low mortgage rates.