The Year to Buy Homes
When is the perfect time to buy a home? While the answer to this question is complex and variable for each individual situation, recent events have impacted conditions for buying a home this year, and we want to break it down for you.
If you haven’t heard, mortgage rates are the lowest they’ve been in three years. This decrease has brought an increase in purchase, mortgage, and refinancing applications – with the Mortgage Banking Association reporting a 21.7% increase in mortgage application volume. However, what do these changes mean for the average consumer?
The decline in mortgage rates means that some 8.2 million 30-year mortgage holders can now qualify to refinance, which would save them at least 0.75% off their current interest rates.
Not only is refinancing an option, but potential homebuyers have also been positively impacted. These low rates have also created the possibility of increased buying power by 15%, which would result in a new homebuyer being able to purchase about $45,000 more of a home in the average price range, but their payments would stay the same, making that new house look even more attractive.
While a potential 8.2 million people have been impacted by these low rates, that population size could very well change if mortgage rates move even the slightest percentage. Since so many people have already refinanced, any shift in the mortgage rate will likely change the amount of people eligible to refinance at all. This requires careful tracking of any changes to the rate and careful consideration before making decisions. However, it is important to consider your options and act quickly, as rates will likely move and different lenders are bound to respond in different ways to these changes. Opportunity is certainly available, and it is worth investigating if these lowered rates could positively impact your home financing or buying situation.
If you have been thinking about purchasing a new home, now is the perfect time to start looking. Let us help you find the right place. Available homes and contact information can be found on our website at www.bishardhomes.com. Still have questions regarding mortgage rates? Our preferred lender, Coastal Mortgage would be happy to answer any questions and get you pre-qualified today!