I’ve been reading several blogs and articles relating to home affordability lately. It’s very interesting reading! According to the National Association of Realtors, home affordability is the best it’s been in 40 years! Due to falling home prices and record low mortgage rates, home ownership is now within the reach of more families then ever.
Homeowners are now bringing in double the income needed to cover the cost of an average home. I published a blog post back in 2008 which mentions that (at that time) it was the most affordable home ownership period in 35 years, and it’s only gotten better! Just compare the median price of a home, interest rates and qualifying incomes and you’ll see how buyers should really consider purchasing a home right now.
If you’ve been on the fence trying to decide when to buy, don’t consider price alone. If you are purchasing the home with a mortgage, think about today’s interest rates and how they effect your affordability factor and then consider purchasing. I looked at the interest rates being offered today, and you can get a 15 year fixed rate mortgage for 3 percent! Wow! …and a 30 year fixed rate FHA mortgage is 3.75 percent!
Contrary to popular belief, banks are still lending, interest rates are low and it is a great time to purchase a home! There are even loan programs that will get you into a home with no down payment! Don’t let this opportunity pass you by!