3 Secrets to Today’s Mortgage Rates.
Buying a home is one of the biggest purchases a family can make—so it’s only natural to want to be as informed as possible. Seemingly overnight, the biggest topic surrounding home purchases has been all about rising mortgage rates. But Hogan Homes knows there’s more to the story.
If you’re in the market for a new home, fear not. While it’s good to be cautious, here are some facts that might have slipped under the radar in the flurry of talk about mortgage rates. We chatted with Hogan Homes Sales Manager Kelsey Renteria to help clear up fact from fiction—and share three reasons why now is still a great time to buy.
1. Mortgage rates are actually, well, pretty average.
According to mortgagereports.com, the average 30-year fixed mortgage rate is nearing its historical average at just over 7%. In fact, Freddie Mac – the main industry source for mortgage rates – shows that between April 1971 and October 2022, 30-year fixed-rate mortgages averaged 7.76%.
“It’s also worth noting: that’s the average rate,” said Renteria. “If you have good credit, just like always, you will most likely receive rate offers below the average.”
2. Housing prices have dropped.
Right now, there’s a general misconception about the health of the real estate market. One year ago, housing prices were soaring and substantially higher than they are today. Why? Like so many other distribution issues, it all boiled down to the supply chain. As the supply chain improved in 2022, house prices leveled out.
“There are exceptional prices on homes right now,” said Renteria. “Don’t be too scared to look! You may be missing out on a great deal.”
3. Home buyers should look for incentives to buy.
Home sellers want to make sure buyers feel comfortable and confident going into their home purchases. Over the past two years, sellers have offered little to no incentives to buyers. Now, buyers can find great offers to help them through the purchasing process.
“Hogan Homes, for example, is offering a 2-1 Buy Down incentive,” said Renteria. “Hogan will offer buyers an interest rate two points lower for the first year, paying the difference, and one point lower for the second year, also paying the difference.”
As a buyer, that would mean if your mortgage rate is 7.34%, for example—the 2-1 Buy Down will knock that down to 5.34% for the first year, then 6.34% for the second year and is then fixed at the 7.34%.
Ready to start your home buying journey?
Hogan Homes is a reputable, local builder—ready to help make your dream home a reality. With over 35 homes available in inventory, you can move in now or design something just for you. Learn more at hoganhomestexas.com