Mortgage rates are low. It's time to buy!
Updated: May 15, 2019
You may have heard all the buzz around mortgage financing and interest rates over the past several months. Last year, the highs of the housing market were fueled by an increased demand in homes and low inventory but were accompanied by steadily climbing mortgage rates. Now things have shifted.
The state of our economy can directly impact and even dictate the movement of the housing market. As of last month, the Federal Reserve decided not to increase rates, which has now caused mortgage interest rates to stabilize. Rates have even reached its lowest point in a year and could continue to fall in the coming months. While this is beneficial to homebuyers, the trending increase in home values have made affordability slightly more difficult.
According to new data from Zillow, in 2018, the total value of the U.S. housing market increased by $1.9 trillion, resulting in a total value of $33.3 trillion. Zillow highlights that the total value was only at $10.9 billion in 2012 as a result of the housing market crash. This is an increase of 6.2%. Zillow Senior Economist, Aaron Terrazas, said, “2018 was a year of unusually strong, stable home value growth across the country, but cracks in the foundation are clearly starting to emerge. During the second half of the year, appreciation slowed sharply in the priciest corners of the country while it picked up in affordable hotspots,” Terrazas said.
Housing values may have touched new highs last year but this does not mean you cannot afford to buy your first or second home now. The housing market and home values are stabilizing in 2019. And with a fair and affordable mortgage rate, it is still very possible to afford a home of your own. Investing in real estate now will help you build long-term wealth for years to come. I am available to discuss your options and put you on the right path to homeownership!