As we recently predicted in this blog, the fall homes market is off to a great start, not least due to mortgage rates currently at multi-month lows.
The outlook is not so bright for the rental sector, however. There has recently been widespread press coverage of more bad news on the horizon, 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 will rise by at least 11% from 11.8 million to 13.1 million by 2025!
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 afford to buy, you are likely to save literally tens of thousands of dollars over the loan period.
With mortgage rates so low and the ongoing reluctance of the Federal Reserve to raise interest rates, the motivation to buy your own home right now, if at all possible, should be almost overwhelming.
If you've been refused a home loan in the past, always remember that circumstances change and there is growing 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 heading south, it is right now!
Securing a home loan at the moment means that, with a fixed interest loan, you can lock in a near historic low rate for the life of the mortgage, liberating you from the ever-present worries about the rent on your present home rising higher and higher, with all the equity benefits going to your landlord...
With such high demand, rents will very likely continue to become less and less affordable. As finance is so relatively inexpensive right now, there has rarely, if ever, been a better time to make the paradigm shift from renter to home owner.
Why not get things under way by contacting us today and
exploring all your options in detail.