At last the economy is showing strong signs of positive change! With record low mortgage rates and lower unemployment numbers helping to get the housing market back on track, all of us at Real Estate Joe is jumping for joy!
Freddie Mac’s month-end survey of 125 nationwide banks put the average rate for a 30-year fixed-rate mortgage at 3.32% for borrowers willing to pay 0.8 discount points. Staying just 0.01 percentage point above the record low rates we witnessed prior to Thanksgiving! With other mortgage products displaying a similarly low average, it seems that this is indeed a fantastic time to purchase that dream home, without over-extending your bank balance...........
Check out some other nationwide average rates released by Freddie Mac ;
- 30 year fixed mortgage: 3.32%
(Lowest rates since Freddie Mac survey began in 1971)
- 15 year fixed mortgage: 2.64%
(Lowest since 1991)
- 5 year Treasury-indexed hybrid adjustable-rate mortgage: 2.72%
(Lowest since July 2005)
- 1-year Treasury-indexed ARM loans: 2.56%
(Lowest since a year ago, when rates hit a record low not seen since 1984)
So with the economy growing, the price of homes are also on the rise, which means that we are currently in one of the ideal situations for anyone looking to buy a new home.
This almost perfect recipe that our economy has concocted for the home buyer will eventually ruin if left in the oven too long! Steady job creation and rising consumer confidence mean that more and more people are choosing to purchase every day, this causes the home inventories to shrink, and thus house prices to rise. In addition to this, the current economy has also lead to a rise in rent prices so, within some housing markets, it is actually less costly to own a home than to rent a comparable property.
This can not and will not last forever. With new employment reports expected to show a positive upturn, and the Case-Shiller Index showed home values making annual gains, as well as the improvement in home sales across the nation, we are sure to see growth rates in the foreseeable future.
The Future Looks Bright
Another very reassuring fact was that the Federal Reserve also announced its plans to take action and help to speed economic growth should the improvements are shown in the U.S economy begin to slow.
Some other key economic reports that should interest any good citizen!
- Labor Department shows first-time unemployment filings dropping by 23,000 claims
- Commerce Department shows that the Gross Domestic Product increased at a 2.7% annual rate in Q3 2012
- Existing Home Sales report shows home sales up 2.1%
- Pending Home Sales Index jumps to its highest point since April 2010
The low mortgage rates, growing house prices, and steady economy combine to offer a housing market that gives fantastic opportunities for buyers investing in a new home. The time to buy is now!