Mortgage rates continued to drop as we went through the summer months, steadily reaching new all-time low points. Americans are benefiting from a historic opportunity to buy a home on excellent terms.
Concerns about Europe have encouraged worldwide investors to buy U.S. Treasury bonds as they seek a safe spot for their funds. Increased demand for Treasury securities has caused their yields to drop – and that translates into lower mortgage costs.
Purchasing with a fixed-rate loan now gives you the assurance that your monthly payments will remain affordable as long as you live in your house. No matter how high interest rates rise in coming years, your mortgage payment will remain unchanged.
OWNERS GET BREAKS
U.S. households enjoy a unique advantage when it comes to borrowing money. Most American consumers can obtain funds for decades on better terms than what’s available for big corporations. In other words, you may be able to borrow at a lower rate than some of our nation’s largest companies can.
You also can deduct your mortgage interest payments when it’s tax time. Both of those benefits translate into substantial savings for U.S. homeowners.
Best of all, you’ll be living every day in your own special place. You’ll gain lifestyle advantages by being able to select your home and neighborhood. Yet it’s important to realize that today’s favorable buying conditions won’t last forever.