Once again, it seems now is the best time to buy a home. Usually, two to three times a year mortgage rates drop. For the past two months, the average interest rate remains below three percent making homes more affordable for those who are planning to buy a property in 2019. This trend has had a significant impact all over the U.S.
However, housing affordability is not at its lowest point. During the last 16 months, housing prices have been increasing, but experts believe that the average home price (AHP) will not surpass the $250,000 mark by December. This phenomenon will benefit thousands of buyers nationwide.
hile we have properties getting more expensive, mortgage interest rates will dampen this increase. The purchasing power of most American families will grow, and not by 5, 6, or 7 percent. According to Black Knight, a housing data agency, potential buyers will gain an advantage of 15 percent. This means that the possibility of acquiring a pricier home is plausible, while at the same time paying the same amount on a mortgage.
Thirty-year fixed interest rates are shrinking with surprising speed, allowing individuals to alleviate some of the heavy lifting with alternative financing. This allows for a home buying process that is easier to handle.
A Broad Perspective
By looking closely at regional markets, we find eye-opening numbers. Starting with California, where home prices in communities like San Jose have fallen fourteen percent. Another example is the northwestern state of Washington. Here the depreciation rate is 9 percent. Many other areas such as Wyoming and North Dakota are following similar trends.
The good news is that to buy a new home in this ever-changing landscape, Americans only need 22 percent of their monthly income. This way, they can cover the costs of a median mortgage payment. In Ohio, for example, income-to-payment ratios (or debt-to-income ratios) are at a mere 12 percent, the lowest levels in the whole country.
If things stay this way, we’ll have the best affordability scenario since 1998, nearly 20 years ago. At AFTHA, we can make all this home buying process more straightforward and manageable. There’s no need to go at it alone when our pool of experts are willing to cut down costs, time, and stress out of your life. Want to know how our program works for first-timers? Call now to (833) 295-6128, or write us an email to firstname.lastname@example.org. We are available to help clients in all 50 states.