“With interest rates near historically low levels and strengthening job growth, now continues to be a great opportunity to buy a home,” said Kevin Kelly, Chairman of the National Association of Home Builders.
Home prices and interest rates are both projected to increase and waiting could cost you more money. The Housing Opportunity Index and the Housing Affordability Index both agree that the cost of buying a home is beginning to increase — leading the indexes to dip.
According to the Housing Opportunity Index, housing affordability dropped slightly in the second quarter of 2014. Chief Economist David Crowe explains that the second quarter reflects the slow- but-steady march toward historic levels of price appreciation and interest rates — which result in the affordability levels we experienced before the mid-2000s boom.
In a recent article, the Wall Street Journal also revealed that the cost of home ownership is lower than any time in over five years. “Housing affordability hit its lowest level in nearly six years in June as home prices slowly start to climb.”
Locally, mortgage rates are still lower than rent payments. “Affordability aside, homeownership provides you a chance to build equity and stability over time. Timing is everything in a market where we expect rates and home prices to rise,” says John Inzeo, Vice President of Wisconsin Mortgage Corporation.
If you were waiting for the bottom of the market, you better buy NOW. With prices below values of seven years ago in most parts of the country and interest rates near historic lows, it is still a great time to buy a home. Contact a Shorewest, REALTOR® to start the process.
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