For the first time in four years yields on the safest, short-term U.S. Treasury bonds settled into negative territory on Wednesday. The one-month Treasury bill yield closed at minus 0.041% and the three-month ended at minus 0.046%.
These developments have huge ramifications for renters looking to buy a home, according to Sheila Monson, one of the state’s top real estate agents. Monson says the rock bottom interest rates also allow current homeowners to upgrade into a larger and nicer home, often without increasing their monthly payments.
Monson says she recently sold a home where the buyer secured an interest rate of 2.75%.
“Most of your payment is interest so with rates so low you can pay off more principal each month and have your home paid off really fast,“ says Monson.
Monson recommends renters text her the amount of their rental payment and she will let them know what homes are available for the same monthly costs. Her number is 907-841-0840. Check out her Alaska Living and Real Estate blog at SheilaMonson.com.