Sponsored Story By Fischer Homes
This is the news prospective home buyers have been waiting to hear!
According to data released by Freddie Mac, mortgage rates have fallen to the lowest level since November 2016. The new 30-year fixed rate average is 3.6% compared to 4.5% a year ago. The 15-year fixed rate also dropped significantly to 3.05%. This is a significant difference and could mean a $40K - $50K in additional buying power for consumers versus a year ago.
Many experts, such as Mark Fleming, chief economist at First American, are optimistic about home affordability and believe that rates will continue to fall for the remaining of the year. Fleming says ”Record income levels combined with mortgage lows mean consumer home-buying power is more than 150% greater today than it was in January 2000.”
Ivy Zelman, known for predicting the 2005 housing peak and the 2012 housing bottom, sees the rest of the year favorably as well. “Main Street is actually doing very well. Consumers have jobs, they’re seeing wage inflation, and I think overall confidence is strong”, she told CNBC’s Diana Olick. “Every quarter point cut in mortgage rates is equivalent to a 3% drop in the price of a home. Since housing prices are down for the consumer more than 10%, it makes buying a home much more affordable.”
For prospective buyers who have been delaying their home searches due to a pessimistic economic outlook and stock market volatility this year, this is great news. Now is the perfect time to buy a home!
Your Fischer Homes team will lead you through the process of finding, designing, and buying the perfect home for your family. Call us at 1-855-342-2281 to learn more about Fischer Homes.