Everyday we hear more news about how things are changing for better or more often than not for worse.  The media has a job to do, 24/7 so they continue to keep their fingers on the pulse of the real estate market, jumping in with a headline that may or may not have real estate relevance.

The Price is the same, but it costs less!

Interest rates are SO low! Why wait?

The fact of the matter is, the market changes watching it from month to month or in the case of the media minute to minute doesn't necessarily mean a trend!  Instead the real estate noise is so LOUD that it deafens and confuses!

Instead of trusting your future to others, try trusting in your own good common sense.  Look at the facts and evaluate them.  When you do chances are you too will realize,

There has never been a better time to purchase a home than  now.

  • Interest rates are at a 50-year low.  Low interest rates mean home buyers can afford to buy more in a home.  When the interest rate rises, the mortgage payment increases.  Buying at a low interest rate means a lower payment.
  • The 30-Year Mortgage May Disappear.  There is a fraction in  Washington D. C. who are working very hard to make changes to the traditional U.S. Mortgage of 30-years.  They want to eliminate it or modify it so it won't look like anything it has in the past. Waiting to purchase could mean having to deal with an unknown that will benefit the bank and not you.
  • QRM Requirements Could Be Mush More Stringent ~ speaking of the fractions in Washington D. C. they are proposing changes to the "qualified residential mortgage" here are some of the proposals (20 Percent Mortgage Down Payment Under Fire)
    • Certain mortgage types would be eliminated
    • 20% down would be a requirement, no exceptions
    • 690 FICO Score minimum requirement
    • The ratio of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)
    • Persons who don't fit into the above requirements might still be able to procure a loan, but at a MUCH higher interest rate
  • Rents are increasing ~ the law of supply and demand is in effect here.  Rental vacancies are extremely low, thus landlords can ask for and get higher rent.  Renters are finding owning a home will be less expensive than renting!

Home ownership might be within your reach.  If you would like to discuss the possibility let's talk.  I welcome your call.

Kristal

 

Resource credit: Graphic and facts Keeping Current Matters

Don't Believe the Doom on US Housing