If someone is considering buying a property, this could mean the difference between buying the property they like and buying the one they love. For example: someone looking to buy a $300,000 winter getaway can now spend $340,000 and have the same payment they would have last year for a $300,000 property when the rates were 1% higher.
$300,000 home with a $240,000 mortgage at 4.25%= $1,181/ month
$340,000 home with a $272,000 mortgage at 3.25%= $1,184/ month
So is it possible that this extra purchasing power and savings on mortgage payments (via refinancing) may keep people buoyant during this volatile time? It is certainly something to ponder.
If you have thought about diversifying your portfolio, this may be a great time to consider increasing your investment in real estate.