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  • Nancie Grace

Should You Buy A Home Right Now?

Updated: Sep 1, 2020

On Friday, July 31, 2020, according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the benchmark 30-year fixed mortgage rate is 3.090% with an APR of 3.380%. The average 15-year fixed mortgage rate is 2.740% with an APR of 3.060%.

If you are planning to buy a home, today's average mortgage rate has dropped significantly since 1971. Why is this so? The rates dropped when the demand for bonds and treasury bonds increased. Since treasury notes are considered to be safer than any other bonds because the government of the United States guarantees them. Investors flee to the safety of government bonds and treasury bonds. The fixed mortgage rates follow the yields on U.S. Treasury notes. Typically, fixed mortgage rates and Treasury yields tend to move together because fixed-income investors compare the returns they can get on government and mortgage-backed securities. When treasury yields rise, investors in mortgage-backed securities demand higher rates since they want compensation for a bigger risk. When there is much demand in bonds, the bond prices increase, and the yields decrease to compensate. Low yields treasury means lower rates on mortgages. Treasury yield only affects fixed mortgages. So, the 10-year note affects the 30-year and 15-year usual loans.

The low rate in mortgages allows homebuyers to be able to buy a home and to afford a second mortgage for home improvement or buying other consumer products.

If you are going for a single residential house, this is very opportunistic time to buy a home.

If you are interested with buying turnkey house in Memphis, TN, call us at 901 308 2815 or visit our website


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