During 2018, interest rates inched up. By the end of the year, when they peaked at 5.08%, economists predicted that early 2019 would see rates reach 5.5%. Lucky for those who are in the market for a new home, that didn’t happen. In fact, the rates dropped! Right now, interest rates are really low—but for how long? Alvarez Construction Company is watching the numbers and we want you to be aware of what’s happening.We’re reaching historic lows, contrary to all the learned pundits who studied the state of our economy and predicted otherwise. In all fairness, the Federal Reserve had forecasted rate hikes in 2019. No one expected interest rates to slip at all, let alone more than a point lower. Freddie Mac reported that rates for a 30-year fixed rate mortgage plummeted to 3.82% in June 2019. That’s close to the 3.31% interest rate we saw back in 2012. But look at the state of the economy back then. If you’re banking on more cuts, be careful. Everyone from the National Association of Realtors and Mortgage Bankers Association to Freddie Mac and Fannie Mae is predicting the numbers will hit the mid-4% this year. To put this in perspective, let’s look at how these percentages translate to a monthly mortgage payment.You’re pre-approved to buy a home for $230,000. You have a 10% down payment ($23,000). Using the Alvarez Construction Company mortgage calculator, your monthly payment will be $967, not including property taxes, insurance, or PMI. Now, if you were to purchase a home for the same $230,000 but at a rate of 4.4%, your payment goes up to <helmet-script/>,037. That’s $70 per month, $840 per year, and $25,200 more over the term of the 30-year fixed rate home loan.Are you ready to gamble $25,200?Lending standards have lightened as well. Lenders are not as strict as they were after the housing crisis that launched in 2008. Lower credit scores, less documentation, and smaller down payments are enabling more people to qualify for a loan that they can truly afford.Here’s another consideration. The price of homes is going up, and will continue to do so. The rising cost of materials and labor will absolutely drive the cost upward. While you sit, wait, and hope for a rate drop, you’ll end up paying a higher purchase price for your new home. So, waiting cost cost you more for the home AND the loan.The Federal Reserve is considering reinstating a quarterly rate hike but they’re in a holding pattern right now. We have no idea when that will take affect.Lock in your rate right now, whether you’re buying a move-in ready home or ready to build one. Connect with Alvarez Construction Company and Eustis Mortgage to make it happen. We have quick move-in homes for sale right now in and around Baton Rouge, as well as a fantastic selection of homesites, floor plans, and options in our many communities. Don’t miss out on the exceptional values available to you. Contact us to seize the day!