Why are Mortgage Interest Rates So Low? How Long Can I Take Advantage of Them?
At the time of this writing, mortgage rates in Las Vegas are 2.875% on a 30-year fixed loan. These are some of the lowest rates that Americans have seen, so it’s no surprise why so many people are trying to lock in these rates before they go up.
Low mortgage rates are helping the housing market recover from coronavirus, but how long can you expect them to stay? And what options do you have if you want to lock in these rates but have a hard-to-sell home on your hands? We answer these questions below.
Why Are Mortgage Interest Rates So Low?
Mortgage rates have hit an all-time low 11 times already, and right now they are less than 3% on fixed loan terms. That’s about a full percentage point lower from where it was a year ago – and we thought that was low!
Part of the reason why interest rates are so low is due to declining inflationary pressures. Mortgage rates are based on what investors will pay for mortgage-backed bonds. Investors need some incentive or they won’t buy those bonds. That’s why rates can only go so low.
With this in mind, it doesn’t make sense for the mortgage market to rely on lower-rate mortgage bonds unless they’re sure those bonds will remain relevant. Additionally, investors want something for their investment, which is why they don’t want people refinancing too quickly.
All of these factors play a role in mortgage interest rates.
Will Mortgage Rates Stay Low in Nevada?
Experts are predicting that mortgage rates will stay low in early 2021. Mortgage rates rise with an improving economy. So if there’s a vaccine that comes up in the next handful of months, the economy may improve and mortgage rates will increase. But it still takes time for things to develop, which means mortgage rates may continue to stay low for the first half of 2021.
I Want to Lock in Today’s Rates But Have a Distressed Property. What Should I Do?
If you own a home that’s in good condition, you should have no trouble selling through a realtor. But if you have a fixer upper in Las Vegas, you may be wondering what you can do. Completing these updates will cost time and money that you may not have.
We Buy Any Vegas House buys properties in Las Vegas. We will make a cash offer on your home no matter what condition it’s in. With our cash offer, you can put down money on a new home and take advantage of today’s historically low rates in Las Vegas. We can even help if you’re in pre-foreclosure or foreclosure.
To get your free cash offer from our team of Las Vegas home buyers, contact We Buy Any Vegas House today.