Why is today the best day to buy a home?
Great article Johnnie, now Buyers can afford more of a home at a lesser interest rate! Never a better time to buy Real Estate than now.
*Note I wrote this yesturday, but I wasn't able to post it until today.
This morning my favorite lender gave me a call and told me that 30 year conventional fixed rates just dropped to 4.625 % (rates have bounced up a little, they are 4.75% as I type). I picked up the phone and started calling and texting everyone in my database to let them know this great news. One client that I have been looking at homes with for about 4 months asked why I was so excited about the rates. This article is what I explained to her, and I thought you might like to know what I told her.
In July when I first started looking at homes with this client she had met with a lender and could afford to pay a total of $1100 per month on their new home. After taking out taxes, insurance and mortgage insurance she was left with about $884 for principal and interest. This is why I was so excited. When we started looking in July, rates were 6.5% on a conventional 30 year fixed loan. At that rate they could afford a mortgage of $140,000. Today when rate dropped to 4.75% the exact same $884 will buy them a home worth $169,500.
Not only will the lower rate allow them to buy a larger home than they could buy just 4 months ago, prices have also come down a little in those 4 months. Every market is different, but in July the average price for homes for sale in Logan, Utah was $207,594. Today the average in $193,724. That is a 6.6% drop. Assuming that the 6.6% drop is across the board, a house priced at $180,687 would now cost $169,500.
I can only guess when the housing market will turn around, but I believe it is starting to level off, and will slowly start to go back up this summer. I also don't know what rates will do, but I don't think we will see them get much lower then this. I was always told to sell when everyone else is buying and buy when everyone else is selling and you will be way ahead.
Why is today the best day to buy a house? Rates are historically low, prices have come down, and the high supply of homes on the market gives buyers more ability to negotiate the price down more. If you are thinking of buying a home within the next year, now is the time to do it.
For more information about why today is a great time to buy a home visit me at http://uthomelist.com I would be happy to help you out.
Thanks,
Johnnie Rosser
* Note to others that may like to use this article. Feel free to use it, but please keep it in its entirety including my name and links. Feel free to add your information at the bottom.
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