If you’ve been in the market to buy a house over the last couple of years, you’re likely well aware of rising interest rates. In 2020, buyers were scoring big-time with 30-year rates as low as 2.68%. Just a short two years later, today’s average 30-year fixed mortgage rate is 5.41%. If you’re feeling discouraged, this blog post is for you! We’ll be exploring historical interest rates and why you shouldn’t worry too much in the grand scheme of homeownership.
If you’re stumbling across our blog for the first time, welcome! Hearthside Homes is a semi-custom home builder based in Liberty, Missouri. Since 1987, we’ve built nearly 2,000 long-lasting homes. We currently build in the Kansas City, Parkville, Kearney, and Liberty areas. Our homes range in price from $350k-$700k. You can check out our available listings here. Don’t forget to check out our gallery! Also, you can click here to learn more about the communities we build in. We hope you enjoy learning more about Kansas City interest rates.
Interest Rates Peaked At 18.45%
If you’re feeling as though you missed your chance to buy, take a look at the historical interest rate chart below. Jumping from 3% to 5% might come with a little sticker shock, but you’re still able to lock in an incredibly low-interest rate! The highest recorded 30-year interest rate was a whopping 18.45% in October of 1981. That same year, the annual average was 16.63%. With this in mind, homeowners need to remember that a 5% interest rate is still a good deal. You can learn more about historical interest rates in the United States here.
Why The Pandemic Plummeted Rates
In response to the Covid-19 pandemic, the Federal Reserve slashed interest rates to help stimulate the economy. This encouraged borrowing on home loans, as well as other loans. Now that rates have returned to back to normal, buyers have a false sense of what a good interest rate is. Of course, the lower the rate you can get the better. That being said, buyers shouldn’t necessarily put off buying a home while they hope for rates to decline. Instead of renting, investing in a home is advantageous in the long run.
Kansas City Is Booming – Buy Now!
If you’ve lived in the Kansas City area for a decade or more, you’re likely stunned by the shocking growth of the City and the surrounding suburbs. With the location becoming more and more in high demand, housing prices are rising. If you plan to live in the area long-term, it’s smart to invest in a home before prices increase further.
Tips For Getting The Lowest Interest Rate Possible
Lenders want to know that you’re a low-risk borrower! To secure a lower interest rate you can put more money down. A larger downpayment means you pose less of a risk to the lender, so they can offer a lower interest rate in return. Additionally, it’s important to show proof of steady income and a low debt ratio. Lenders look for consistent and reliable sources of income so that they feel confident in your ability to make timely payments. Finally, maintaining a good credit score is essential. If you have a history of late or missed payments, your interest rate will be higher.
Get Expert Advice From Groundwork Mortgage
Want to get the best Kansas City interest rate? Reach out to our trusted partners at Groundwork Mortgage. If you want expert advice from a real person who cares, contact their team at (816) 708-0001 or click here to learn more.
House-Hunting In Kansas City?
Buying a home can be a bit overwhelming when you start looking at all the numbers. That being said, becoming a homeowner is one of the most rewarding investments you’ll likely ever make! If you’re house-hunting in the Kansas City or surrounding areas, click here to check out our listings.
Hearthside Homes of Kansas City is a semi-custom home builder. This means our clients either purchase one of our beautifully designed spec homes, or they can build a predesigned floor plan in one of our preferred communities. We offer a wide range of floor plans to choose from. Our architects and construction managers have collaborated to create homes with ideal layouts. Click here to check out our 2-story, 1.5 story, ranch, reverse, and split-style floor plans.
Purchase Your Home With Confidence
We understand the purchase of a home is likely your largest investment! When you buy a Hearthside Home, you’ll rest easy knowing the property has been thoroughly inspected by third-party experts. We also offer a 12-month warranty on all of our new construction homes, ensuring your comfort and satisfaction. Don’t just take our word for it! You can click here to read Google reviews from our happy customers and click here to watch our video testimonials.
Take A Look At Our Design Center
If you decide to build with Hearthside Homes, you’ll get to turn your vision into reality at our Design Center. From cabinetry to flooring, lighting, hardware, paint, and more, you’ll have a blast making your home uniquely yours! Intimidated by making material selections? No worries! An expert interior designer will guide you through the process to make sure your new construction home looks cohesive and beautiful. Our Design Center is located at 1915 Industrial Drive (#300), Liberty, MO 64068.
Hear From Our Happy Customers!
Our client, Jason, shares on Google: “Hearthside Homes builds a great quality house. They create a schedule and then keep that schedule almost to the day. On their App you can see what is happening in your house. Many days we drove by to see if the scheduled work was being done, without fail the contracted workers were there each time on the schedule. That’s not the case with many other builders, this company seems to keep a very strict and predictable timetable. If you’re building a house, it’s stressful enough, but there was little added stress with Hearthside. My only complaint is they require a realtor to be present with you to check on the house. Other builders allowed access whenever we wanted, but at the end of the day it just required more planning on our part and wasn’t a huge deal. The people are good to work with and when a mistake is discovered they do what’s right given the totality of the circumstances. I absolutely would recommend them to anyone looking to build a new home.”
Learn More About Hearthside Homes
If you have any questions about our home building process, feel free to fill out the form on our website or give us a call at (816) 781-0234. Don’t forget to follow all the fun on Facebook, Instagram, and Pinterest! We hope you enjoyed learning more about Kansas City interest rates. Thanks for stopping by Hearthside Homes of Kansas City! You can read more of our blogs with home-building tips and tricks by clicking here.