LEXINGTON, Ky. (LEX 18) — The home of your dreams has probably never been more affordable than it might be right now.
“I got something the other day that a 15-year fixed (mortgage rate) is 2.75%. That is historically low,” said Realtor Devon Ramage of The Brokerage of Lexington.
Rates on a 30-year fixed mortgage also remain very low, which has flooded the market with buyers. And the buyers can aim a little higher than they might’ve been able to do, just a handful of years ago.
“You’d get a multiple offer situation as a buyer and give up a little quicker,” Ramage said. “Now buyers are more apt to stay in the market because the interest rates are so low.” Buyers can also afford to spend a little more on the purchase price, as that monthly mortgage payment would be offset by the lower interest rate.
Ramage said that while the market still favors the seller, it’s a bit of a hybrid market, in that the low interest rates are making it good for both parties. The only real problem he’s seeing now is inventory, or lack thereof.
“People are refinancing, as opposed to selling. They’d also have nowhere to go, with supply being low.” Ramage explained. “You’re seeing these houses, especially in Fayette County, under $250,000 and you’ve got ten buyers going for it,” he continued.
That’s a good problem for a seller to have. The low rates are a good thing for the buyer.
“These low rates are keeping the buyers in the market longer,” he said.
And if Devon could offer one piece of advice to a buyer, it would be to ignore the amount of time a home has been listed. Do your homework on it, but don’t be turned off simply because it’s been sitting for a while. One home isn’t necessarily better than another because the “for sale” sign hasn’t been in the yard for very long.
“Don’t be afraid to look at a home that’s been on the market for 200 days. Chances are those sellers are motivated. You could get a pretty decent price,” he said.
We already know you can’t get a much better interest rate.