Interest rates dropped again! It’s OPEN SEASON ON LOW MORTGAGE RATES!
August 2, 2019
The Federal Open Market Committee—or as everyone calls them, “the Feds”—announced on July 31 that they dropped interest rates again by a quarter of a point. But you know what isn’t going down? Rent. In fact, it’s heading upwards. Sage Homes Northwest is announcing that it’s OPEN SEASON ON LOW MORTGAGE RATES! Take advantage of the growing imbalance between the value of owning a home and the cost of renting.
The interest on a 30-year fixed rate mortgage averaged 4.87% in November 2018, with predictions that we would see 5% in early 2019 and 5.5% by just about this time. Surprise! Rates went in the opposite direction and instead of 5.5%, we were seeing 3.77%—the lowest since 2012.
Meanwhile, the median rental price in Seattle increased 3.3% between June 2018 and June 2019, to $2,569. And with the high demand, driven by a hot and growing tech market, it will keep climbing.
Why are you still paying rent?
Rent is an expense. You pay a lot of money every month and get absolutely no return, other than a place to live. When you own a home, you gain equity. You can also paint the interior and make changes without worrying about losing your security deposit—and honestly, does anyone ever get that back?
As home values increase, which they are, your investment gains value. Ask any landlord. They’re paying the same monthly mortgage on their property and making more money by increasing your rent every year, for no other reason than they can. They’re building equity and earning income, while you do neither!
If you’re paying the average Seattle rent of $2,569 a month, you can already afford a home. You can buy a home for $600,000 and, by putting a 10% down payment and with a 3.77% 30-year fixed rate loan, your monthly payment is $2,507.
Sage Homes Northwest has new construction, luxury townhomes in desirable Seattle neighborhoods, starting as low as $579,950. We’re also building townhomes at Echo Woods in Shoreline where you can have a 2-car garage, for $599,950. Our new townhomes and single-family homes are coming to Capitol Hill this fall. With limited opportunities here, take advantage of the low interest rates to upgrade to homeownership.
Don’t forget that energy efficiency also contributes to the value of owning a home. You have more control of your utility costs when you choose a new home that’s built to save money! Sage Homes Northwest is a certified 4-star BuiltGreen builder, which ensures you get the benefit of our energy-saving methods and choices.
Why buy a Seattle home now? Home prices, like rentals, will go up. With these low interest rates, people are buying, which means inventory goes down. The time to hunt for your new home is now, while interest rates are low and before housing prices increase. There are plenty of mortgage programs available, so let’s see how we can structure the right one for your situation.
Come talk to us at Sage Homes Northwest to see what you could own and get pre-approved to buy a home. And make your move from renting to owning with this open season on low mortgage rates.