KCM, or Keeping Current Matters, is a service which collects national real estate and housing information so that real estate agents may stay up-to-date on market trends. The responsibility now falls on us, as a brokerage, to keep all of our clients informed!
The first major reason why prospective home buyers should seize this moment is: there has been a steady rise in mortgage credit availability. Since November of 2013, banks and lenders have been more and more willing to issue mortgage credit to buyers.
Another strong motivation to buy now is the decrease in average FICO score needed to obtain a Federal Housing Administration Purchase Loan. Currently, the average acceptable FICO credit score for obtaining an FHA Loan has dropped to 682, which is a 13 point decrease since 2013, and the lowest we've seen in two years.
Finally, consider the fact that interest rates on mortgages are expected to rise within the next year. Taking out a 30-year, $250,000 mortgage right now would come with a 3.98% interest rate as per Freddie Mac, an industry leader. If a buyer were to hold off just one year, interest rates are projected to climb to 5.1%, and monthly interest payments would be $166.71 higher. That may not sound like much, but over the span of one year, that's $2,000, and over 30 years, that's $60,000 more that a homeowner would be paying as opposed to what they'd pay if they bought their home in the current market conditions, right now!
Gillani Homes makes it a priority to stay informed on all real estate market trends and topics so that we may pass along only the wisest council to buyers. The numbers don't lie! Don't wait until these rates rise! Call us today and let's get started on finding the best home for you!
60 Sand Lane
Staten Island, NY 10305
Office: (718) 442-4400
[All graphics used courtesy of KCM.]