Home affordability is the question of the day and future. Many wonder how can I afford a house for sale in today's housing market of 2022. Since the interest rates are continually going up and prices are still high along with rental prices increasing how can a person be able to accomplish this? With the economic uncertainty many wonder if I should buy now or wait, clink link to understand even more /ECONOMIC-UNCERTAINTY---32819---32836---Dr-Phillips-6-23494.html
There are three factors that are contributing to home affordability. First are mortgage ratesFrom September 22, 2022averaged 5.5% and now 6.5% upward to 6.7%. Home prices has significantly appreciated at least 75% creating much equity for homeowners. Lastly wages are trying to keep up with inflation, However it's not truly where it needs to be.
Buying a home is a large transaction and investment of your salary and you want to feel comfortable with a stress free mortgage payment that you can afford. Unfortunately, this is a volatile housing market environment all homebuyers are encountering. As the interest rates rise, rental rates rise. It's inevitable and easily understood why it make sense now to buy versus renting and you can click link to understand even more Click link to understand more about the impact of rising mortgage rates /IMPACT-OF-RISING-MORTGAGE-RATES---32819---32816---Dr-Phillips-6-23433.html
The forecaster's predict that it does not look like it will be getting any better as per the next two years. Personally for me three to five years to get back to pre-pandemic interest rates. Click link to learn more about inflation /INFLATION---32819---32836---Dr-Phillips-6-22829.html
There are key factors that will affect home affordability. First and foremost mortgage interest rates. This is the biggest increase of rates in over fifty years, rates are almost five points above since 2020-2022. Home prices have almost put home-buying near a standstill. Wages slightly grew but not enough to keep up with inflation. As of March 5, 2023 the good news is that housing affordability should improve as the Federal Government combat inflation which has slowly worked for home sellers to trim prices so that this keeps homebuyers is the game. There are over 2000 downpayment assistance programs out there to help many families. With so few homes out there to choose from, you may want to widen your scope of your search within your budget.
Mortgage applications took a dive since June and July 2022 the first spike and second spike, simply because the spike in the interest rates took homebuyers out of the market for the home that will fit their family needs. Even to include another spike in September. This produced a so-called a cool off period where the market slowly starts to reset itself. This is the ugly transition phase that had to occur.
Lenders are being creative with a variety of loans to accommodate a homebuyer. Nevertheless the banking industry and government has learned a valuable lesson in the last recession upon offering bad loans that are not regulated and being a careful watchdog as we move ahead.
For all homebuyers, it is even more imperative that you keep your credit in excellent standing to receive the best interest rate that you can possibly obtain based on the current market conditions. Click link for my free e-book https://kevinstrawter.book.live/buyer-book
The Dr Phillips area is still producing home sales. As a professional realtor and trusted advisor, I strive for you to obtain the best interest rate as possible so that I can find that home you will absolutely fall in love with. Serving Dr Phillips and all Central Florida. Stay connected and contact me today at 850 496-6412. Buying or selling a home involves a series of requirements and variables, understand that each case is different. It is important to have a trusted advisor in your corner form beginning to end to help make the process seamless. Click link to know more about Kevin Strawter /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html