With the lowest mortgage interest rates in history, there is still a problem with housing! First time home buyers are feeling the pinch and first time homebuyers buy homes so we can have move up buyers. This creates a problem for everyone.
With tighter credit standards for mortgages, it is more difficult for homebuyers to get a mortgage. Monthly rents are going up and so buyers feel the pinch from both sides!
Since April 2007, home prices are down more than 15%. During that time, mortgage rates are down from about 6% in 2007 to about 3.6% today. With those numbers, today is a fantastic time to buy a home! It is cheaper now than it was five years ago to purchase a home.
In the last few years it has become more difficult to buy a home, needing higher credit scores and lower debt to income ratios. Many people are finding it more difficult to qualify for the homes they want. Personal income levels are lower than they were in the last decade which doesn't help us either – so are average credit scores.
As credit has tightened for mortgages, rental prices have increased across the country. As more people need to rent, the demand has increased and rental vacancies have dropped to the lowest in several years.
With rental prices increasing, it is definitely a terrific time to buy a home if you can. If you aren't sure what you qualify for, contact a loan officer and see what you can do. If you can't do anything now, we can let you know what you need to do to qualify for a home. Home prices will start to increase, but interest rates should stay low for awhile longer. They may not be this low, but they will still be lower than they were for many years!
Leslie Vanderwerf, NMLS ID#335509, Summit Mortgage - Email – Website
