It’s almost obvious — the housing market is in recovery. Home sales are up, home supplies are down, prices are rising, and confidence has moved to multi-year highs.
As a buyer, you always hope to buy when the market’s at its bottom; it’s when you’ll find the best “deal”. It’s too late for that now, however. The bottom happened 10 months ago. And going forward, such deals may get scarce. Housing appears poised for a strong 2013.
For today’s home buyers, the clock is running out. Those who buy between now and year-end may fare better than those who wait for next year.
3.40% Rates Yield 20 Percent More Purchasing Power
It’s a unique time to be a home buyer. Home prices remain depressed in most U.S. markets and mortgage rates have dropped to all-time lows. As a result, purchasing power has increased 20 percent as compared to last year.
This means that, for the same monthly mortgage payment, you can buy 20% more home in 2012 as compared to 2011.
It’s an astounding statistic which is only possible because of recent mortgage rates. After flirting with 5 percent in February of last year, the average 30-year fixed rate mortgage has dropped to 3.40% nationwide for buyers willing to pay 0.6 discount points at closing.
Mortgage rates for FHA loans and VA loans have moved even lower.
However, both the housing market and next year’s home affordability remained under threat. There are 5 not-so-obvious reasons why it may be better to buy a home in 2012 as opposed to waiting for 2013.
I covered these topics in a post for Trulia. You can read the post here.
“Early-Birds” Get The Housing Worm
The threats to the housing market are part-regulatory, part-circumstantial, and part-economics. An astute home buyer should be aware of all five.
Covered in detail at Trulia, the reasons why early-bird buyers may get better deals includes :
- Government loans programs such as HARP help to keep home prices from falling
- New regulation is reducing the number of “depressed” homes for sale
- More buyers chasing fewer homes for sales
- New mortgage fees are raising loan costs and mortgage rates
- Higher mortgage insurance premiums weaken low-downpayment mortgages
For today’s home buyer, the article covers topics that don’t always show on listing sheets, or get covered by the newspapers. It tells the story behind “why now is a good time to buy”.
Get Purchase Mortgage Rates
Home affordability depends on home price, downpayment and mortgage rate. There are low- and no-downpayment mortgages available via the FHA’s 3.5% downpayment program and the USDA and VA 100% mortgage program and, for each, mortgage rates remain low.
See how today’s mortgage rates fit your budget. Get started with a rate quote today.