Great news for investors and home buyers of all kinds this week. Mortgage interest rates have hit a new historical low! This is sure to help those of you out there that are actively real estate investing. 30 year fixed rate mortgages are now averaging 4 to 4.25% interest and those who are willing to pay points can find deals as low as 3.75%. According to the country’s largest compiler of mortgage rate data lists 15 year fixed rate home loans at an average of 3.67% and adjustable loans at just 3.18%.
Those with some experience in real estate investing know that they may not qualify for these rates for acquiring their own properties when rehabbing and flipping houses, but this will definitely make things easier as a whole. Low mortgage rates mean that homes are more affordable for buyers and widens the amount of people that can afford to purchase your properties. This will of course make real estate investing easier and mean you can turn properties around faster. While you may not get 3 or 4% interest rates on financing when you acquire investment properties you ought to find that rates are better than before regardless of whether you are turning to banks or private mortgage lenders.
Financial analysts at Credit Suisse also say that these mortgage rates are spurring more buying of mortgage backed securities. If this continues this means banks will enjoy more liquidity and will help ease lending which in turn will fuel easier lending and improvements in home values. Clearly this is great news for those involved in real estate investing. Use these record low interest rates to boost your advertising effectiveness and let potential buyers know that they may find it much easier to get a loan on your homes for sale than they think.