Getting a house is definitely one of the top priorities in the life of any person, however it can be quite difficult to figure out when is the right time to do that. The economical state of the country has been in decline in the past few years, however as of late the economic condition of the country seems to be getting better.
At this particular moment, conditions are more than favorable for the first time buyers, since prices have gotten down and the mortgage rates are falling at a very rapid pace. Sure, this situation might not go on for a very long time, which is why home buyers need to act now if they want a mortgage. There are other things that make mortgage contracting a favorable thing right now, and that is the steady rate of employment. In the past months and last year overall the US has seen an increase in the amount of jobs on the market.
All of these combined have provided the perfect environment that now allows people to get the best possible mortgage rates on the market. In fact, mortgage applications have had a steep increase recently with the Wednesday morning surge that went up to 49% when it comes to the number of mortgage applications.
Sure, not all mortgage application received greenlight, in fact only around 22% did, but this clearly show the massive potential that the market has right now. Moreover, another sight that the economy is doing really good right now comes from the fact that average contract interest rate for the longer term mortgages (up to 30 years) has decreased. Yes, these rates might not be lower than the ones we encountered a few years ago, but with a more stable economy people have better chances of paying the debts on time, which leads to a much better economic situation.
Borrowers are definitely the ones holding the most benefit here. Those without money to refinance their mortgage a few years ago can now take advantage of this situation.
The interesting thing is that the low rate environment that we can find right now isn’t bound to be changed soon, with a report from Freddie Mac actually stating that the mortgage rates are bound to remain at these values at least until the half of the year, with them even being able to surpass that mark in the long run.
Alongside that, we are going to enter the spring home buying season as well, so all of these factors will benefit a lot, since more and more mortgage applications will be posted in this regard.
Many see buying a house as an investment, with the main purpose of generating wealth in the long run. A better economy and better wages, combined with low gas prices and other confluents show that this is the perfect time to get a mortgage, as the real estate market is still trying to recover so the prices are quite low in various regions. Keeping money to buy the dream home at a better time is not an option, instead you need to do the best you can in order to buy now!