Home ownership is a dream shared by millions. Everyone wants a place to call his or her own. The two factors that determine the current level of home ownership affordability are housing prices and interest rates.
Our current state of home affordability is moving from “favorable” to “moderate.” This is due to prices that have risen steadily in recent years and mortgage interest rates that are low, but also rising a bit in the last few months. Therefore, what was considered “favorable” less than a year ago is now more often described as “moderate.”
Although mortgage rates are currently obtainable at approximately 5%, stable or rising property values plus increasing rates has the potential to result in an increasingly challenging level of home affordability. The open doors for many individuals and families to make a purchase is still open, but may be closing just a bit lately.
Home affordability is the real key when it comes to looking at homes. Favorable home affordability levels enable buyers to get that extra bedroom or larger floor plan that they would otherwise have to live without. For those on the cusp of qualifying for a mortgage, a low mortgage rate is an important factor that can help with the approval process.
Our current home affordability levels can still turn a buyer’s dream into a reality. For home buyers, now is still a good time to look into the options and talk with a lender about financing options and total monthly payment.
The Law Office of Donna Hearne-Gousse