Mortgage Rates and Affordability – Why does it matter to you?
According to NAR’s research economist Nadia Evangelou, 30-year fixed mortgage rates increased to 2.79% from 2.65% last week. Buyers should not be discouraged since the inflation is subdued, so if you are thinking about buying now is a good time to begin your search with a Warren Real Estate agent.
Jobs are still a concern, however experts believe that both employment and inflation will pick up later this year. Why are experts so confident? Businesses are re-opening all over the country and the US is making large steps forward in dealing with the pandemic. These events will create market stimulation and will cause an increase in prices. This will increase mortgage rates slightly. NAR is forecasting the 30-year mortgage rate to average 2.9% and 3.0% in the first and second quarter of 2021, respectively.
NAR said that, “Housing demand will remain very strong… households earning $100K can afford to buy more than 60% of homes currently listed for sale nationwide. This translates to nearly 770,000 homes across the country as of November. Respectively, households earning $75K can afford to buy nearly half of the homes that are available for sale.”
In the Finger Lakes, the market is heating up. If you are interested in buying or selling, contact a Warren Real Estate agent today. The mortgage rates and affordability are really at the perfect point for buyers and sellers. This is truly the time to make your buying or selling dreams come true.