Today there is some much needed help still available with the purchase of the family home, BUT IT IS VANISHING. Back when the Fed got involved in reducing the mortgage rates, they were 6-6.5% and are currently 4.4%ish. As the Fed is “tapering” off the easing it has given, we are headed to a predicted interest rate of 5.4% in the 1st qtr of 2015. This is from a Dec 2012 rate of 3.35%.

“This decision from the Fed is a trigger to get out there and look for a home while rates are low, as the Fed is still giving buyers the opportunity to borrow money at a discount, ” Michael Deery- President, Citywide Financial Corp.
So, if you’re a buyer that will use a home mortgage for your purchase, quite simply, the ability to borrow that money is cheaper now than it will be in the future. You’ll notice an increase in the average home price above from 2014 to 2015.

This increase will be due in large part to a lack of inventory (homes for sale) from this year and the pent- up demand to purchase from those buyers who postponed buying in the past for various economic reasons.
This supply/demand effect will help bring back some strength into the market. If sellers wait too long to put their homes on the market, they will lose available buyers with the increase of interest rates. I recently had a buyer looking for a home from $240-300k, but they reduced their top price range to $275k after looking for about six months.

Considering these facts, all you folks that would like to sell, there’s not a better time this year to place your home on the market with less competition than right now!! Feel free to contact me or another team member in our office to discuss how you can best take advantage of our recovering market today!