Are you in the process of buying your first home or business in Montana? You are likely looking at mortgage lending. The fact is, mortgage rates can change at any time. Many first-time buyers are likely to be scratching their heads over when is the best time to make the leap!
Of course, a fantastic idea is to see the best mortgage rates through comparison sites online. Real-time data will help you to understand what to expect in the short term from Montana property prices. But what about the long-term rates? What if you want to plan?
Mortgages and Montana in a Nutshell
Sadly, no one has a perfect vision of future mortgage rates, whether in Montana or California. However, what we can do is pursue historic data for precedence.
Generally, you can expect property values to be higher in Montana than you’d expect from average US rates. That’s likely to be somewhere in the region of between $300,000 and $400,000.
Mortgage rates on a 30 year fixed basis have moved around quite a bit over the past decade. The highest rate in 4.71%, was available in 2010. There has been fluctuation, with the lowest rates of 3.67% available in 2020. This varies slightly with 15 years fixed terms, with significant dips to 3.03% and 3.09% in 2012 and 2016, respectively.
However, that doesn’t give us a precise answer on whether or not Montana mortgage prices will drop in the future. Given that the housing market is set to recover slightly after much uncertainty, they may well increase.
Points to Keep in Mind
Essentially, we need to take a look at the main drivers for the mortgage rate change. Inflation, for example, is a prominent factor. This is only likely to go up and therefore increase the price you pay.
GDP growth and housing demand, too, are big players in mortgage rate valuation. Montana properties are highly sought-after. Therefore, with the US economy striving to bounce back after 2020, we could see rates increase.
That is not to say that, overall, we won’t expect a dip in the future. Significant economic and social changes can impact the mortgage rate demand you see from day to day. In Montana, there may even be substantial, sweeping changes from week to week. It’s therefore always a good idea to keep an open mind.
Not only that, but it’s worth remembering that mortgage rates can and will be affected by many different factors. There may be no ‘perfect’ time to get a mortgage deal in Montana. Therefore, it’s crucial to seek professional advice.
Can I Get a Property in Montana?
While Montana’s housing and property prices are higher than average, the market is growing. Massive national social and economic shifts over 2020 and 2021 have knocked the market back. This means there will be a period of recovery – it’s here where we can expect mortgage rates to inflate. Again, it’s an excellent idea to check in with a mortgage expert and/or a financial adviser.