Many Americans feel as though “timing” is critical when purchasing a home. It's a buyer's market in most areas of the country, but many would-be purchasers -- especially first time home buyers -- remain on the sidelines, waiting for home prices and rates to fall still further.
The risk in waiting is that buyers could end up paying more than they need to, whether that is on the price of the home or the monthly payment because of the interest rates.
What potential home-buyers should focus more on when calculating the “timing” are local factors; not national or even international. Many homes in all markets are still sold based on "life changes," such as births, divorces, deaths, downsizing and relocation, etc. which means that people will continue to buy and sell homes on some level no matter what the economy is doing.
The status of the mortgage industry as a whole at this very moment consists of impressively low mortgage rates. Locking in a loan now with the current rates still leaves home buyers with the advantage. Though the market is constantly fluctuating, now really is the time to start the home-buying process before it’s too late.
In 1985, the annual average mortgage
interest rate on a 30 year fixed was 12.43%!!
In 1995, it was 7.93% and
in 2005 it was 5.87%.
Today’s mortgage interest rate on a 30 year fixed is a mere 4.12%.
Some of the lowest rates of all time occurred in the latter months of 2012 at 3.35% and have since bounced up and down between 4.46% and today’s rate. It’s too late to grab those historic 2012 rates, but it is not too late for the current rates.
The risk in waiting is that buyers could end up paying more than they need to, whether that is on the price of the home or the monthly payment because of the interest rates.
What potential home-buyers should focus more on when calculating the “timing” are local factors; not national or even international. Many homes in all markets are still sold based on "life changes," such as births, divorces, deaths, downsizing and relocation, etc. which means that people will continue to buy and sell homes on some level no matter what the economy is doing.
The status of the mortgage industry as a whole at this very moment consists of impressively low mortgage rates. Locking in a loan now with the current rates still leaves home buyers with the advantage. Though the market is constantly fluctuating, now really is the time to start the home-buying process before it’s too late.
In 1985, the annual average mortgage
interest rate on a 30 year fixed was 12.43%!!
In 1995, it was 7.93% and
in 2005 it was 5.87%.
Today’s mortgage interest rate on a 30 year fixed is a mere 4.12%.
Some of the lowest rates of all time occurred in the latter months of 2012 at 3.35% and have since bounced up and down between 4.46% and today’s rate. It’s too late to grab those historic 2012 rates, but it is not too late for the current rates.
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