Home affordability moved higher last quarter, boosted by the lowest mortgage rates in history, a rise in median income, and low home prices throughout California and the country. According to the National Association of Home Builders, the quarterly?Home Opportunity Index read 75.9 in 2011′s fourth quarter. In other words, more than 3 in 4 homes sold between October-December 2011 were affordable to households earning the national median income of $64,200. When you look at the three factors that effect home affordability, this may be the best home buying opportunity we will have in our lifetime:
- Mortgage rates are at historic lows and the chances of them going any lower are slim.
- Housing prices are depressed to the level that investors are jumping into the purchase market adding support to current price levels.
- Household income levels remain strong.
In addition the rental market is showing lower vacancies and higher rents so the comparison of rent vs. buy is also being swayed in favor of buying. For someone who has been sitting on the sidelines waiting to buy, things have definitely moved in the right direction. This data shows that the housing market is ripe with great opportunities and a purchase now could very likely be the single best investment you make in your lifetime.
In addition to this great buying opportunity, there are purchase loans currently available that are helping many people buy a home and take advantage of the current low mortgage rates. For buyers with minimal down payments, financing is available with as little as 3% down on purchases up to $430,000. With only 3.5% down, loans are available on purchases up to $756,000. And with 10% down jumbo loans are available on purchases up to $1,375,000. These loan programs combined with record low mortgage rates and low housing prices make for incredible opportunities for people looking to purchase a home. Looking forward 5-10 years, anyone who got into the housing market today will be very thankful they did. Even Jim Cramer said today that housing affordability makes this the ideal time for homebuyers to get in the market. For details on any of these financing programs Scott Springborn can be reached at (949) 280-3593.
Scott Springborn is a Mortgage Broker by trade. I can tell you from experience he is very good at finding a loan or a home that meets your individual needs. He resides in Newport Beach with his wife Hillary and three children. For recreation, Scott enjoys traveling with his family, surfing, snowboarding, bodysurfing, poker, and golf. Visit Scott at Back Bay Funding, or his personal mortgage site, SpringbornMortgage.com.
Back Bay Funding
19600 Fairchild Road, Suite 150
Irvine, CA 92612
DRE License #01709616 NMLS #328114
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