The time to purchase is NOW!
As we move into Fall - in what still feels like a Spring Homebuying season, there have been some recent actions taken by the FED that has had a positive impact on the mortgage and real estate industry leading to the perfect market for homebuyers.
- The Federal Reserve redefined how they will support the economy over the next three years. Two key points outlined in their plan are 1) to keep interest rates low until labor market conditions return to the “maximum employment” and inflation has reset to 2% and “is on track to moderately exceed 2% for some time, and 2) they have committed to the purchase of mortgage back securities.
- Second trust deeds are now back to 85% CLTV so borrowers with 15% down payment can get a FNMA or FHLMC loan with a second behind it. This is allowing borrowers who do not qualify for a Jumbo Loan to take advantage of a low interest rate FNMA or FHLMC first and combine with a second loan to secure a home with a purchase price of over $1,000,000.
- There is strong buyer confidence in the real estate market as homeownership is now seen as a safer investment than the stock market. People are taking their money out of the stock market and their retirement accounts to purchase homes - something we didn’t see a year ago.
- Income and salaries are increasing in most middle-class occupations allowing buyers to purchase more when combined with the low interest rates.
Don’t put off homeownership no matter how many offers you have to write. Waiting for prices to drop can cause you to miss out on today’s unprecedented opportunity. Home prices are expected to remain strong because of the combination of low interest rates, strong buyer confidence, high demand, and the lack of inventory in our market.