Mortgage interest rates are again at an all time low and, with housing prices expected to increase slightly in 2010 (analysts have predicted 3-4%), a generous Tax Credit available to many home buyers, Now may be the best time to purchase a home. Take a look at the historical chart below and see how national average Mortgage interest rates have fallen over the last several years.
These low, fixed rate interest rates increase a buyer's purchasing power without the volatility of an Adjustable Rate Mortgage. While it is very difficult to predict interest rates (especially for me as my Crystal Ball no longer works!), most indicators and economists suggest that interest rates will begin rising soon. There are also indications that some loan programs, including FHA, will begin tightening their lending criteria even more in the coming year. The combination of these factors will, most likely, create a less favorable environment for many home buyers to qualify to purchase a home.
I strongly encourage prospective home buyers to act Now rather than to wait for conditions within the housing market to deteriorate any more thus making it more difficult to buy a home.
If you are a real estate agent share this information with your clients who may be on the fence about buying now. You will be educating your clients and helping them avoid a potentially costly mistake by waiting.
Happy house hunting!
Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com
This blog's intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the mortgage and real estate markets. These are my opinions and should not be regarded as factual data.
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