With interest rates still at historically low levels now is a great time to purchase a home. But, with employment increasing, rising home prices, and projected interest rate increases in the near future, waiting could cost you.
The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) are two organization that measure and track home affordability over time. Both the NAR's Home Affordability Index and NAHB's Housing Opportunity Index are showing the cost of purchasing a home is starting to rise, affecting affordability negatively.
According to NAHB’s Chief Economist David Crowe, “The second quarter HOI reflects the slow but steady march toward the historic levels of price appreciation and interest rates that result in affordability levels we experienced before the mid-2000s boom.”
And, Michael Hyman, Research Assistant at NAR said, “At the national level, housing affordability is down for the month of June due to higher prices and qualifying income levels despite the lowest mortgage rates of the year.”
So, even though you missed the very bottom of the real estate market, interest rates are still remarkably low and home prices in most areas are still below the levels they were seven years ago. It is still a great time to purchase a home.
Contact me to find out how much home you can afford and what it will cost you at BarkerLoans@gmail.com or 708.473.7688.
