Mortgage rate drops, refinancing your home, and details on when to list
October is upon us, and so are the pumpkins on every porch, cozy sweaters, and way too much candy. Grab your favorite warm drink (apple cider, anyone?) and dive into the latest updates and autumn fun! As always, keep reading for your monthly dose of all you need to know in MA!What's new?
This month is all about Halloween in my household! My boy’s have been counting down the days since August and there is always a Halloween movie on TV!
On a professional front, the subtle drop in interest rates have reinvigorated some buyers. Ping me if you want to explore if buying a home is the right move for you.
What's happening around town? MA will be celebrating October with a handful of local events and happenings. Keep reading for more information below!
Is time running out to list my home this year? Let's look at the data...
Inventory levels are still low compared to historical averages and it's still expected to be a seller's market.
The recent mortgage rate drop strengthens buyers’ purchasing power and will likely motivate buyers who've been waiting on the sidelines.
The median home price in the U.S. sits around $430K but economic research suggests that, on average, home prices increase by 5 to 10 percentage points for every 1 percentage point decrease in interest rates.*
*(FRED, Sept 2024)
So, is it time to refinance?
Mortgage rates have finally dropped! (Hallelujah!) The question everyone is now wondering: "Should I refinance?"
Deciding whether to refinance your home depends on several factors. Evaluate if it’s a good time for you:
YOUR CURRENT RATE A general rule of thumb is to refinance your mortgage when interest rates are at least 1% lower than your current rate.
COSTS OF REFINANCING The cost to refinance your mortgage can range from 2% to 6% of the loan amount. You want to be sure that potential savings will outweigh total closing costs.
YOUR "BREAK-EVEN" POINT Your break-even point is when you will recoup all the closing costs that come with refinancing your loan. For example, if your closing costs are $5,000 and your monthly savings from refinancing is $200 per month, it would take you 25 months to break even.
YOUR FUTURE PLANS If you plan to stay in your home for several more years, refinancing could be a smart move, but if there's a decent chance you'll relocate before reaching your break-even point, it might not be worth it.
October Home Maintenance Checklist
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