Over the last couple of weeks I've been seeing rates on 30-year fixed mortgages fall substantially... I've seen some recent quotes for 5.5%! When you look at a straight affordability perspective, taking 1/2% off the interest rate (which is what has happened in the last few weeks) on a $200,000 loan saves you $1000 per year in interest charges, which would be a monthly savings of $83 or is like taking nearly $14,000 off the purchase price of the house, as compared to the higher interest rate. With inventory at … [Read more...]