Interest Rates Falling

Don't look now, but 30-year fixed mortgage rates have dropped below 6%, the lowest they've been in 3 years! Several factors have led to the rate reduction, including a series of short-term rate cuts by the Federal Reserve, some positive data on inflation and jobs, an end of quantitative tightening by the Fed,  as an announcement that Fannie Mae and Freddie Mac would purchase $200 billion of mortgage-backed securities. 

While 5.99% may still seam high compared to the 3% mortgage you might currently have, our buyers have some good options to help buy down that rate even further. Riverwood Homes offers a $10,000 incentive toward a rate buy-down. Additionally, our preferred lenders offer a 1% credit toward closing costs or rate buy-down. Together, these two incentives can help you buy down your fixed rate to 5% or even lower for an ARM! If you pay a discount point on top of that, you can be comfortably into the 4%'s, which is a very good rate historically.

Most lenders are offering a one-time no-cost refinance so if and when prevailing rates do drop enough to entice you to refinance, you can do so with very little out-of-pocket expense. 

So, even though interest rates are still high, they have come down substantially, and you have some very good tools available to buy the rate down.