Friends and Clients —
It's an undeniable fact:
The last few years have been tough for buyers looking for a new home.
One big reason for this is the shortage of homes on the market.
Due to this shortage, home prices rose dramatically over the past decade — and they continue to rise. Nationally, median sales prices surged 53.5% between early 2012 and summer 2019.
As a result, the homeownership rate has dropped. In 2019, the homeownership rate was just 64.8%, about 2% lower than at the start of the decade, and more than 4% below pre-crisis levels.
However, here's the strange thing:
Despite the increased prices, now is a better time to buy a home than 10 years ago. That's according to a new report by online lending marketplace LendingTree.
It mostly comes down to the present very low mortgage rates. The current 30-year fixed mortgage rate is just 3.49%, almost 2% lower than 10 years ago.
A drop of a couple of percentage points might not sound like much, but it can easily mean hundreds of dollars a year and tens of thousands saved over the course of the loan.
That's why, as of 2019, homeowners spent just 4.1% of their annual household income on their mortgage payments. That's the lowest percentage since the start of the decade and the lowest percentage on record.
What does all this mean for you specifically?
Well, there are two reasons why many homebuyers have had a hard time taking advantage of the current low mortgage rates.
I mentioned the first reason already. It's simply the shortage of good homes on the market.
Fortunately, several beautiful homes recently came on the Central Pennsylvania market. They are definitely worth seeing. If you want to check them out, view this complete listing:
What about the second reason keeping buyers from profiting in the current market?
That issue is stricter lending regulation. In other words, it's become harder to get approved for a mortgage.
If you are interested in buying a home but you're worried about your ability to get approved for a low-rate mortgage, then I might be able to help
Specifically, I’m thinking of an expert mortgage lender I know and trust. They can work with you to make sure you get approved for a loan and get the best possible rate.
If you'd like me to put you in touch with the mortgage lender I have in mind, simply give me a call at 717-695-3177. After all, I’m here to help.
Have a great day,
Joy Daniels
The Joy Daniels Real Estate Group
The Joy Daniels Real Estate Group
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