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Are Home Buyers Primed to Buy Right Now?

By
Real Estate Broker/Owner with Kolsky Realty & Management 01311273

 

Is now a good time to buy a home? Have you been on the sidelines waiting to time the real estate market? Well “if” so – it looks like you might be in the driver’s seat getting ready to enjoy the ride. It looks like buying a home today pencils out pretty good right now for those that have been waiting on the sidelines.

 

Are you tired of paying ultra-high rents? Well if you have been renting you know that rents are at an all-time high. And if you have been paying attention to home mortgage rates – they are approaching all-time record lows. And with the incredible available low home loan rates – investing in your future and buying a home is most likely a smart move.

 

The truth is – nobody has a magic ball to time the market perfectly. Bottom line – you’ll need to do the math and see if buying a home today makes good sense. I’m just going with what I see today and looking at the numbers. And for those in a position to buy a home right now, there’s no doubt in my mind the numbers point to “buying a home versus renting one” wins out over the long haul.

 

Just take a look at the current Freddie Mac's Primary Mortgage Market Survey®

 

Continuing fallout from the Brexit vote drove Treasury yields lower again this week. The 30-year fixed-rate mortgage followed Treasury yields, falling 7 basis points to 3.41 percent in this week's survey. Mortgage rates have now dropped 15 basis points over the past two weeks, leaving them only 10 basis points above the all-time low.

 

30-year fixed-rate mortgage (FRM) averaged 3.41 percent with an average 0.5 point for the week ending July 7, 2016, down from last week when it averaged 3.48 percent. A year ago at this time, the 30-year FRM averaged 4.04 percent.

 

15-year FRM this week averaged 2.74 percent with an average 0.4 point, down from last week when it averaged 2.78 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.

 

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.68 percent this week with an average 0.5 point, down from last week when it averaged 2.70 percent. A year ago, the 5-year ARM averaged 2.93.

 

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. ***Borrowers may still pay closing costs which are not included in the survey.

 

 

Comments(5)

Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Rents are going up in many areas of the country.  Many renters may do better trying to find a home to buy now.  Especially with mortgage interest rates being so low!

Jul 07, 2016 11:24 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS on having this blog FEATURED in the Old Farts Club group!    

Jul 07, 2016 11:24 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Myrl Jeffcoat ~ rents seem to be at all-time high and interest rates are hitting all-time lows, if you've been waiting on the sidelines for a good time to buy "right now" is a pretty good time to jump in buy a home and start building equity

And -thank you! You know I love being featured in the OFC

Jul 08, 2016 05:42 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Fantastic info and post here, Jon Kolsky ... you're so right to point out the positives that presently exist in the market(s).  But also right to acknowledge that the "wisdom" of buying exists on a personal level.  

One thing for sure:  It's definitely the perfect time to ask questions and get facts!

 

 

 

                                                     CONGRATULATIONS!

                                            FEATURED IN BANANATUDE!  

                                                                   YEA! 

 

Gene

Jul 09, 2016 01:40 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi .... I love it! Thanks for the feature in B-tude... And I agree "ask the right questions to find the best answers."

Jul 11, 2016 02:51 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

A pleasure, Jon Kolsky ... it was well-earned ...


Gene

Jul 11, 2016 08:05 AM