Good News For Homeowners
The real estate market has been red hot for the past year. This has been largely driven by historically low mortgage rates. Buying a home at a low mortgage rate can save you a great deal of money over the life of your loan and it is clear that millions of Americans recognize this. Homeowners have benefited greatly from the currently booming real estate market. The scorching real estate market has led homeowners to watch their home values and home equity increase dramatically. Every week, more good news keeps coming out about the real estate market and homeowners! The team at Peoples Choice Mortgage is here to keep you updated on some of the latest real estate headlines and what it means for buyers, sellers, and homeowners.
Mortgage Rates are Staying Low
Taking up a mortgage is one of the best things you can do financially. Mortgages offer you financial flexibility. The power of mortgages rests in not being tied up over intensive cash real estate purchases. Mortgages can also provide tax benefits by itemizing deductions, and it is great for your credit. We are here to make sure you feel comfortable with finding the right mortgage for you.
Many have feared that mortgage rates would increase dramatically, but that is not the case. Mortgage rates are doing just fine. While they did increase slightly at the beginning of the year, they have been dropping after their initial increases. The real estate market was expecting a large increase, but the mortgage rates have dropped to 3.13% in the past month. Homeowners and homebuyers are now taking advantage of these low mortgage rates. Mortgage and mortgage refinance applications are up because of enthusiastic home buyers and homeowners. All of this shows how there is still a high demand for purchasing new homes, which means home values will keep rising for homeowners!
New Home Sales are Increasing
Home builders are starting a lot of new home construction to take advantage of current demand. This is a response to the market being red hot and a need for more housing construction in America. Homeowners might be worried that adding too many new homes to the market might decrease home prices and home values. However, new home sales are increasing. New homes sales have spiked up by 20.7% month over month. Simply put, homebuyers are buying houses as soon as they are built. In many cases, they are buying homes long before they are built.
One thing that is clear is that demand is through the roof and will exceed supply even if more inventory is added. This means homeowners can rest assured that their home values will remain high and probably go even higher. It also demonstrates that it is not too late for homeowners to benefit from buying a home! Buying a home today means you can take advantage of increasing home values tomorrow. One of the best ways to build wealth for yourself and future generations is to buy a house. Your property could be sold in the future for a great price, or used for your loved ones and future family. Remember, buying a home is a great investment, but it is so much more. It is also about securing a place for you and the ones you love to make and share cherished memories.
Economic Indicators Remain Positive
There are a plethora of economic indicators that point to the market being in a perfect spot for homeowners. The Conference Board Economic Leading Economic Index reported that 1.3% increase in the economic momentum towards the red hot market. Median sales for housing increased by 17.2% on an annual basis in March. This marks the fastest rate of appreciation recorded in the 21 year history of the National Association of Realtors. This amassed to an all time high of $329,100 as the median sale of a house. Looking back at 2020, new home sales rose 3.8% in the 4th quarter of 2020. That upward trajectory has stuck with us into 2021. We also can not forget about the increasing amount of mortgage applications that are being witnessed.
As mentioned above, homeowners and homebuyers are taking advantage of low mortgage rates. Mortgage applications jumped up by 8.6% for the week ending April 16 according to the Mortgage Bankers Association. In addition, purchase and refinance applications have also increased by 5.7% and 10.4%. All of this is indicative of a red hot real estate market and a booming economy. The state of this economy is great for homeowners. It means that people are going back to work and spending more money, which leads to more hiring. The result of all of this is people getting caught up on their mortgage payments. This will prevent a future wave of foreclosures that will flood the market with homes and drive down market values.
Final Thoughts
It has never been a better time to be a homeowner. The market is booming and prices are at historic lows, so there is no reason to wait! Every economic indicator is pointing towards purchasing a new home. Even if you are not a homeowner, you can take the steps to be one tomorrow. If you are interested in buying a home and want to take advantage of today’s red hot real estate market, contact us! We offer a complimentary, no-obligation mortgage qualifier to see where you are financially. Our team of professional mortgage brokers would love to help you make your dream of owning a home a reality.
