Over the last several weeks the rates I’ve seen quoted from my loan officers have dropped from 6.75% to 6.375%. On a loan of $200,000 that can save about $60 per month, or give you approximately $8000 more buying power for the same monthly payment.
While this rate drop is a pleasant surprise, buyers should not expect it to continue to drop or to stay this low for very long. Most professionals in the industry expect rates to resume their slowly upward climb and reach 7% near the end of the year. Think of this as a great reason to get out and buy a house this week!