A Perfect Storm for Home Buyers?
Is now the best time in modern history to buy a home?
Mortgage rates stayed near all-time lows this week, as the housing market showed signs of life and sent potential home buyers a message: If you want to buy low, it doesn't get any better than this.
The benchmark 30-year fixed-rate mortgage was 3.97 percent, unchanged from last week, according to the Bankrate.com national survey of large lenders. The benchmark 15-year fixed-rate mortgage fell to 3.19 percent from the previous week, and the benchmark 5/1 adjustable-rate mortgage rose to 3.02 percent from 3 percent.
NAR's composite quarterly Housing Affordability Index* rose to a record high of 205.9 in first quarter. The higher the index, the greater the household purchasing power. This is the first time the quarterly index broke the 200 mark since record keeping began in 1970.
And, a few weeks ago Warren Buffett was asked about the current real estate market and whether he felt now was the time to buy. His response was rather emphatic:
"If I had a way of buying a couple hundred thousand single-family homes, I would load up on them."
So, the question you ask yourself is: What does this mean? Whereas in the past we saw the perfect storm for sellers with low interest, easy credit and high demand, we are now seeing the perfect storm for home buyers. Low interest rates, easing credit, and the highest affordability index on record.
So, if the world's greatest investor goes on the record and says go for it, What are you waiting for? If you are waiting for an invitation, here it is: I invite you to take advantage of what may be the best opportunity in your lifetime to buy a new home, second home, or investment property.
If you now need to get an idea of your current home value, need information about a property, or know someone who may be a little behind on their mortgage, give us a call, email, tweet, or Facebook us. We're here to help.