Rates have dropped down to near historic lows. As of mid-April, the 30-year fixed was at 3.625 percent, the 20-year fixed was at 3.375 percent and the 15-year fixed was at 2.875 percent.
Back in 2012, rates were actually lower by a quarter percent across the board, but real estate values were also lower at that time as the whole country was still struggling to recover from the financial crisis of 2008.
In addition to seeing our fair share of refinancing, 2016 has brought many more borrowers to the market looking to sell their current home and upgrade to a bigger one.
Borrowers are feeling much more comfortable in 2016 than in 2012 because real estate values have recovered some since then and sellers have more equity now to put down on their next purchase.
The U.S. economy also is much more stable today than it was in 2012, as we are really the one large global economy that is holding its own.
First time homebuyers are feeling better about the economy and are also looking to take advantage of the low rates for their first purchase.
I work with about 20 realtors throughout the city and suburbs and they are all very happy with the activity that they are seeing in early 2016. Let’s just hope that it can last.
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