The trade war in China is providing some opportunities for homebuyers and homeowners in the 85212 and 85209 zip codes. Wall Street showed some anxiety this summer over trade tensions, and a slowing in growth has resulted in a drop in long-term bond yields.
Homeowners with higher interest rates than they prefer are taking advantage of these opportunities to make their current home more affordable.
Due to the steady and sustainable appreciation we’re seeing in the housing market, you have a tremendous opportunity to utilize some of your equity to do some great things for your home. You could remove costly private mortgage insurance, take some cash out to do remodeling, or consolidate some high-interest debt through a refinance.
“Lower rates mean lower payments and more purchasing power.”
While rates have dropped, the local economy is booming. Arizona has the fourth-fastest growing state economy in the U.S., and it’s in the top 10% in job growth. With an increased number of high-tech companies investing in East Mesa, local job growth is expected to continue.
The rates we’re seeing today are the lowest we’ve seen since the end of 2017 and goes against everything experts thought we were going to see.
For homeowners, rates spell lower payments and lower cost of interest over the life of a loan. For buyers, rates can make a significant impact on affordability. A difference between a 4% and a 5% rate per month is over $160.
Lower rates also help buyers increase their purchasing power, allowing them to afford more of a home than they could have when rates were higher. The past few years have created great opportunities for homebuyers and homeowners to buy or refinance, and our friend Steve Farmington at Loan Depot would love to help you out.
If you have any questions for us in the meantime, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.
