Selling your home? Get a free home value report
Buying a home? Search all homes for sale
Today, we're here to talk to you about the affordability of homes in our current market. There are a few reasons why homes are so affordable right now.
First of all, mortgage credit availability has gone up over the last two years. Two years ago, it was very difficult to get a mortgage. Credit standards are loosening and because of that, more buyers are able to get mortgages.
Secondly, FICO score requirements have gone down. It used to be that you needed a high FICO score, especially when the market wasn't doing well. Now your credit score doesn't have to be so high. In fact, if you weren't able to qualify six months ago, you could get a mortgage now!
Mortgage companies are also allowing you to make smaller down payments. You don't need to put 20% down on a home anymore. In fact, the current average is 10% down. First-time buyers are putting down 4%, and repeat buyers can put down as little as 13% across the country. That gives you plenty of leverage to buy a home today.
Another reason homes are so affordable right now is the historically low interest rates. Right now, rates for 30 year fixed rate mortgages are at 4%. Mortgages are incredibly affordable right now with these spectacular rates.
Finally, interest will be going up in 2016. As rates go up, you qualify for less money in a mortgage. You should buy now while rates are low and homes are affordable.
As you can see, now is a great time to buy a home. If you have any questions, give us a call or send us an email. We look forward to hearing from you!
