This week ends with yet more excellent news for prospective home buyers with already low mortgage rates descending to their lowest levels since April.
For renters, however, the past few days have seen widespread press coverage of yet more doom and gloom, following the publication of a report from the Harvard Joint Centre for Housing Studies and Enterprise Community Partners.
In "Projecting Trends in Severely Cost-Burdened Renters", the Centre predicts that the number of households that spend half or more of their income on rent is expected to rise by at least 11% from 11.8 million to 13.1 million by 2025!
This is further bleak news for renters. Even today, about one in four renters already contributes more than 50% of household income for property rental purposes.
Rents have continued to grow faster than incomes for the past 15 years. If you can possibly afford to buy, the benefits of doing so will very likely save you literally tens of thousands of dollars over the next few decades.
As we have frequently reported in this blog during 2015, first time buyers have made a significant comeback this year. Given what's happening in the rental sector is it really any wonder!
The message is ringing out more loudly and clearly by the week. With mortgage rates pinned so low and a Federal Reserve still apparently reluctant to raise interest rates, the motivation to buy one's own home should be astronomical.
Even if you have been turned down for a home loan in the past, remember that circumstances change and there is growing statistical evidence to suggest that lending standards are beginning to ease (sources include The Mortgage Bankers' Association Mortgage Credit Availability Index, Fannie Mae's latest Mortgage Lender Sentiment Survey and Ellie Mae's most recent Origination Insights Report).
If there was ever a time to revisit the possibilities, then, with mortgage rates still in retreat, it is right now! Securing a home loan at the moment means that, with a fixed interest rate, you will be able to lock in a near historic low rate for the life of the loan, freeing you from the constant worries of the rent on your home rising to an unaffordable level.
Market forces will always dictate that, with continuing high demand, rents will very likely continue to become less and less affordable as time moves on. We would strongly argue that, with finance so inexpensive and home prices still at very sensible levels, there has rarely, if ever, been a better time to break the cycle.
Make the first move to a bright new future by contacting us today and exploring all your options in detail.