Over the last seven years, mortgage rates have been falling, but at the beginning of 2015, many experts predicted those numbers would rise. While they did increase steadily between May and July 2015, August shows a different trend, making now a great time to buy a home in Atlanta.
Spring Lows
The average rates for April 2015 showed numbers lower than they have been in years. That month, Georgia homebuyers paid an average 3.72 percent interest on a 30-year fixed-rate mortgage and an average of 3.11 percent on a 15-year fixed-rate mortgage. However, in May, those numbers began to climb.
Summer Climb and Fall
As expected, June and July saw a slight increase in interest rates. The average July 2015 rate for a 30-year fixed-rate mortgage in Georgia was 4.08 percent, and 3.42 percent was the average for a 15-year fixed-rate mortgage.
But August offered homebuyers a slight reprieve. So far, the average Georgia rate is 3.91 percent for a 30-year fixed-rate mortgage and 3.35 percent for a 15-year fixed-rate mortgage. So, what caused the drop? Freddie Mac chief economist Sean Becketti blames international financial turmoil in countries like China and Greece.
The Future
Could rates continue to drop for the rest of 2015? While no one knows for sure, Becketti and other experts say that it is likely, as these international crises will not end anytime soon. At least, the rates could hover around 4 percent for a while longer, despite what many people predicted of the Federal Reserve in early 2015.
Federal Reserve governor Jerome Powell told CNBC that “nothing has been decided.” While he concedes that the economy is strong, there is a “weaker than expected reading of employment compensation in the second quarter” that could affect the decision.
No matter what happens in the future, now is the time to buy. To learn more about Atlanta real estate, call Atlanta Fine Homes Sotheby’s International Realty at 404.237.5000.