It seems that 2015 is looking good for potential home buyers. Currently, the 30 year fixed interest rate for home buying is 3.7%. That’s near some of the lowest in over 60 years. Plus, flipping has started to diminish, which makes home buying more accessible for traditional home buyers. How does this help you if you are in the market for a new home? Today, we’ll discuss the advantages home buyers have in today’s market.
The Interest Rate
Now is the time to buy a home if you want to take advantage of a lower 30 year fixed interest rate. It is projected that it will bump up to 4.3% in the third quarter of this year, and all the way to 5.3% overall in 2016. What’s that mean?
If you wait, you’ll miss out. You’ll be potentially paying well over $100,000 or more on the life of the loan. Monthly, that will be hundreds of dollars per month you could have otherwise kept in your pocket.
The other effect this will have is the correlation to the rising housing prices. Housing prices are again on the rise. The more you end up having to pay on a property with a higher interest rate means you’ll be spending a lot more money overall.
The Lack of Flipping
The trend of homes being “flipped” has lowered for the second year in a row. That, accompanied by the shrinking number of foreclosures, are healthy signs for the housing market. It is also beneficial to the average home buyer.
When less cash is in play, you won’t have to worry as much about being outbid. This levels the playing field so to speak. You have a better shot at acquiring the home you desire.
What then is the next step? You’ll want to create an action plan. Hopefully you’ve already started saving a nest egg as your down payment for your home. If so, then you’ll want to jump on finding a home loan. When choosing one, you’ll want to most likely choose the fixed interest rate compared to a flex interest rate. Flex rates can seem more desirable but when you re-up on them, you may be paying a lot more.
If you are looking to buy a home and are searching in the greater Encinitas, California area, I’d be happy to help you. Give me a call or write me an email. We can discuss the area and price range you desire as well as the style and features. I look forward to talking with you.