In this article, why should I start with interest rates as to why potential buyer's should get off the fence? Strong economic factors are weighing in on interest rates daily and when the recovery gets feet underneath it, rates will move up quickly and not look back to the levels we have today. Rates today are the best we have seen since December 13, 2010 and we have had 8 consecutive weeks of dropping mortgage rates.
Housing prices are officially in double dip territory and prices are allowing buyer's to see dreams come true with homes prices and low interest rates giving them a payment that fits into their budgets. Considering the home mortgage interest tax deductibility safe for now in our tax code, the advantage of interest and private mortgage interest tax breaks figures favorably into future homeowners benefit balance sheet.
And add mortgage financing into the mix of reasons and this may be the biggest factor of all to consider buying a home now. FHA has recently been talking about increasing the down payment from 3.50% to 5% and conventional lenders are consistently sending a message of higher return (higher interest rates) for higher risk borrowers (lower credit scores and higher debt to incomes).
A strengthening economy inevitably pushing rates higher, the highest affordability index since 1963 (home price, household income and low interest rate measure), and looking at potentially a more difficult loan qualification situation in the future are the 3 reasons I believe buyer's should get off the fence. Read more here about why buyer's whould get off the fence. When you have mortgage questions, call me for a personal consultation regarding your financing options.