Written by Laura Wise
Whether you are considering a first home, a larger home for a growing family, moving into your dream home, you have just built at Kolob Ranch or perhaps buying a second home or rental property, land or water.
Two key economic factors – Mortgage rates and Home prices, have lined up in your favor. Take a look at how they are working together to give you extremely potent buying power and why you should take action now before these favorable conditions change.
Irresistible Interest Rates
When you read in the newspapers that rates are at historic lows, this is not an exaggeration. Interest rates on home loans truly are at the lowest they have been in decades. At times of slow or no economic growth, the Federal Reserve will lower the federal funds rate in hopes of making credit cheaper to all people and in turn boosting the economy. This is why home mortgage rates have remained so low. The moment the economy starts to truly grow, the Federal Reserve will start to increase the federal funds rate, and home financing loan rates will follow suit. Right now, mortgage rates are incredibly attractive at around 4 percent.
In terms of home prices, they have been climbing, note the recent sales within our community. Inventory might be starting to slip, which could see prices go higher. Using simple supply-and-demand, it’s not hard to see that with declining inventory, today’s low prices could go up in the not-too-distant future. This is just as true for today’s rock-bottom interest rates, so it’s not hard to see why savvy homebuyers are responding to the bargains. All-cash purchases of existing homes are accounting for roughly 30 percent of transactions, and investors are accounting for more than 20 percent of purchases. The investors know a good deal when they see one and today’s lending and real estate environment represents an amazing bargain indeed.
The numbers don’t lie. You will most likely never see a better buying opportunity than now. If you are considering a purchase, call me let me give you all the information to make an informed decision;
Laura Wise, associate broker, Stratum Real Estate Group, Sales manager Kolob Ranch; Member of both the Washington and Iron County MLS Boards.