Mortgage Interest Rates

According to recent reports US unemployment rates have improved. More Americans have gained employment lessening the overall percentage of those unemployed. Reports like these generally affect mortgage interest rates for
the worse. An improving economy tends to precede higher mortgage interest rates.

Despite still low interest rates, first time home buyers still have not been very active in the home buying market. According to housing market statistics they account for a much smaller percentage of housing purchases than normal. Instead it has been investors that have driven the housing market. Accounting for most of the share of new home purchases.

The biggest obstacle to homeownership reported by prospective first time home buyers is coming up with the down payment. However, most states have initiated down payment assistance programs to help first time home buyers achieve their homeownership dreams.

We have been anticipating the normal influx of Maryland first time home buyers that historically begins to occur around this time of the year. As of yet, this great increase has not occurred. There has been some improvement in first time home buyer applications, but nothing like expected so far.

What is the cause of the apparent hold back for prospective home buyers? Is now a good time to buy?
Maybe some prospective home buyers are afraid of homeownership. The housing crash has maybe left many worried that the same fate could fall upon them?

The most important thing a prospective home buyer should do is make sure that they are educated about the current housing and mortgage market. Also, do not commit to a mortgage payment that you cannot reasonably afford. In the housing crash massive amounts of people eventually lost their homes in foreclosure. Many people lost their jobs or were in loan programs that they really could not reasonably afford.

Homeownership is a big responsibility but offers many potential benefits. In recent years the housing market has been normalizing and home values have been rising each year. With a stabilizing market and still low interest rates now is a good time to become a home owner. If the economy continues to improve as it has been, mortgage interest rates will rise. Indicators point to rising interest rates going into next year.

If you are considering buying a home, doing so while interest rates are still low will put you in a much better buying situation. Now is a good time to act. Contact us: 443-943-6486 email us.