Are Interest Rates Falling in Austin and Georgetown?
Today marks the finish line for the 2024 Summer Olympics. The performances – daunting. The performers – riveting. The backstories, training regimens, and competitive events seemed like a Marvel meets Hallmark movie in the making. Olympic medal holders, becoming leading stars: Simone, Katie, Trinity, Noah, Sydney, and Quincy.
With eyes focused on Paris, it was easy to miss something close to home – like falling interest rates. I know…I sound like a Realtor. Well, I am a Realtor and always looking out for my clients.
Ten months ago, the 30-year Mortgage Rate peaked at 7.79%. For the first seven months of 2024, rates bounced within a narrow range between 6.8% and 7.5%. Homeowners holding a mortgage rate of 3% liked their home enough to stay put. At the same time, patient buyers waiting for rate relief lost patience and quit looking.
Until this week. What happened? It depends upon who is talking but basically, in a two-week window, the stock market threw a temper tantrum, the currency market made headlines (it rarely does), and bond traders decided that the Federal Reserve would take seriously cutting interest rates at their next meeting.
The Result
By Friday, mortgage rates cascaded to their lowest level since May 2023. So attractive were the rates, refinancing surged by 21% from the previous week and 60% higher than a year ago, the highest in two years. The Mortgage Bankers Association (MBA) reported, “Mortgage-application volume reached its highest level since January of this year.”
The Rates
According to Austin Home Loans’ email to me on Friday afternoon.
A 30-year fixed conventional mortgage rate – 6.375%, APR 6.502%
A 15-year fixed FHA mortgage rate – 5.75%, APR 6.533%
A VA (Veteran’s Administration) 30-year fixed – 5.75%, APR 6.023%
Note: the APR stands for Annual Percentage Rate and represents the full annual cost of borrowing money for a mortgage, including interest and additional fees. It will vary by lender, therefore always ask for specific details. It is more accurate since it is more comprehensive.
Meanwhile
Big box builders are increasing their incentives. Here are a few examples.
Perry Homes: 4.99% interest rates on select homes for a limited time, or choose up to $20,000 in other savings – closing costs, design center allowance, or interest rate buydowns.
Lennar: 3.75% interest rate on a 30-year mortgage with Lennar Mortgage in Kyle, San Marcos, and Lockhart.
Meritage Homes Back to School Sales Event: Mortgage rates as low as 4.5%.
This Week
This week, a new client flew into town. Her purpose? Find a job, buy a house. I found a place for her to stay during the transition. We met over dinner, and I asked questions, then listened and made notes. By day she interviewed employers. In between appointments, we house-hunted. We started with resale and gravitated toward new construction. I negotiated with a sales consultant in a Williamson County neighborhood. By the time I was finished, my client received the following:
A three-bedroom, two-bath house for $230,990 in a neighborhood with a 2.6% tax rate.
A washer and dryer
A refrigerator
Backyard fencing
Irrigation front and back
Sod front and back
Blinds
Her interest rate? 3.99%
Please know, my services are only available IF you allow me to schedule your first visit at a builder’s model home. If you go without me, I cannot represent or serve you according to the builder’s protocol. However, should you contact me first, and arrange your appointment, I will gladly serve you to my utmost ability.
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