If you're contemplating buying your first home, there were two significant events affecting you positively this week.
Yesterday there were widespread reports that mortgage rates had plummeted to three-year lows.
This very welcome news followed the Federal Reserve's decision on Wednesday not to raise short term interest rates and lowering its projection of how much they'll be raised in the coming years. While these rates don't necessarily have any direct effect on home loan rates, they do affect the cost of other borrowing, including credit cards.
There is still talk that mortgage rates could fall yet further but, even at the current already ultra-low levels, it's arguable that there has rarely, if ever, been a better time to get on the home ownership ladder.
There are also multiple options out there right now to secure a low down payment loan too!
Some will argue that the current low inventory levels of homes makes them more expensive than they otherwise might be. However in counterbalance to that is the incredibly cheap cost of a home loan at the moment. It's also true to say that most homes are still very realistically priced, are affordable and represent excellent value for money.
As all home renters will know, the cost of renting never goes down and, indeed, has skyrocketed in many areas, with no realistic sign of a slowdown.
But the big headline for would-be first time buyers is that, right now, they can lock in a low, low interest rate for the life of the home loan. Over many years this really adds up to be a huge saving, releasing more of your income for future needs, home improvements and wealth creation/investment.
At some stage, and of course we won't know exactly when it is until it's already history, this perfect storm will subside and mortgage rates will rise. Bear in mind that, just as no one predicted the current downward trends (exactly the opposite in fact), a return to steadily rising rates could be quite sudden and unforeseen.
Therefore it's reasonable to suggest that, even if rates do dip a little more, anyone buying their first home right now will still be smiling years later, happy that they got on the ladder at a very opportune and inexpensive moment.
Our strong advice is to not let this fantastic chance pass you by. Call us today and we can guide you every step of the way until you achieve your dream!