919-655-0330

Thinking of Buying a Home? Now is the Time!

Now is quite possibly the best time we have seen in 15 yrs for people to buy that new home. The cost of buying new homes is tracked and put into a graph called an Affordability index. When you combine really low interest rates with an abundance of homes for sale coupled with drop in home values over the last 18 months… what occurs is that the affordability of homes are at all time Highs.

Now, here we are in 2013, and what we are seeing is striking. While there are still a few more foreclosed homes than we would like, the available supply of overall homes is at its lowest point in the last 5 years. Many price points are slowly regaining their traction.
In an effort to capitalize on the renewed demand that is growing, Builders have begun ramping up their production. In a recent conversation with two local building supply stores, their business was up 32% and 48% respectively over the previous year. The market is coming back. But when you consider the current values, the current interest rates and the current supply of homes, the “Affordability” of a new home is higher than its ever been.
30 year fixed rate mortgages have remained below 5% for nearly 18 months and we presently find rates between 3.5% and 4% dependent upon the lock term, the loan to mortgage value, and your credit scores. 15 year rates are hovering around 3% at this time making 15 yr loans even more feasible for more people.

The Triangle Real estate market has a long history of steady growth but has seen a small decline in home values over the last few years. Don’t be alarmed. In many pockets of America, they have witnessed depreciation of 10% or more. But here in the Triangle, we have seen much smaller drops in value. Translation: now is a great time to buy that home.

100% financing- USDA remains as the only program offering 100% financing other than loans for US veterans (VA LOAN)
Minimal down payment- FHA still allows for financing with 3.5% down payments but we have recently seen a re-emergence of other 3% down payment loan options.

30 yr fixed loans with great rates, many well under 4%
15 and 20 yr loans ranging from 3.0% to 4.0% depending upon credit scores, lock terms, and down payment amounts.

In addition, some 5 and 7 Year ARMS still offer some relief from the 30 yr rates out there. For instance, consider a 5yr ARM that is fixed for 5 yrs, is amortized over 30, but carries a rate in the 3.25-3.5 range and offers even more payment relief.
No matter which loan you like, no matter whether this is your first home or a move up home, right now, historically speaking, is the most affordable time to buy.

 

Comments are closed.

Testimonials

We are extremely pleased with the service we have received at Mortgage Choice. We have secured three home mortgages with David Tyndall and have never felt so confident working through the often confusing and tedious process. David is so easy to talk to and has helped us understand the complexities of the loan process. We truly feel that he has our best interest at heart and is a man of high moral character. He is also very easy to get into contact with and often answers his direct line himself. On occasions when another member of the staff answers the phone, calls are never screened and you are put through to David immediately, without ever being asked your name or the nature of the call. We have already and would continue to recommend the services of Mortgage Choice to close friends and will absolutely secure future mortgages with Mortgage Choice Inc.


Christie Johnson