Many people are concerned that it’s no longer affordable to buy a home, but this is not at all the case. Prices have leveled out and interest rates are still low.
In fact, to put current rates into perspective, the average interest rate when I entered real estate 18 years ago was 9%. And people thought that was low.
So, if you’ve been concerned about where rates are headed now, you can take comfort in knowing they were once much higher. You may also be glad to know that the Fed has held off on plans to raise rates this year. Also, rates were lower last month than they have been in the past 13 months.
This is a big deal because even a 1% change in interest rates equates to a difference of approximately $30,000 to $40,000 in buying power. In short: Now is a great time to buy.
But low interest rates aren’t the only reason this is the case. There’s also the matter of rising average wages. So between higher paychecks and lower interest rates, affordability remains high.
If you have any other questions, would like more information, or are curious about how my team and I can help you buy a home, feel free to give us a call or send us an email. We look forward to hearing from you soon.