2016 was the year of low mortgage rate and also low inventory. The average for the 30-year fixed-rate mortgage was 3.65% which is the lowest annual average ever recorded by Freddie Mac going back to 1971. Since then mortgage rates have slowly started creeping up in December and are projected to rise slightly throughout 2017. Currently rates are around 4.2% which is still extremely low for any home buyer.On the flip side, inventory of homes available to buy continues to be on the low end and is standing at the four-month market. A “healthy” market typically stands at six-months. Lack of supply in the hottest markets has helped increase home values throughout 2016. Increased home values mean more homeowners have a positive equity in their homes. This allows them to make a move – whether downsizing or moving up into their dream home.
In the end it is a good idea to have an idea of where the market is as to best use it to your advantage and to beat rising interest rates or a widening gap between supply and demand. Homeownership is the American dream for a reason; it creates wealth, independence and pride in a lasting financial investment. If you are thinking of making a move, call a Shorewest, REALTOR® to see how much equity you have in your home. With low inventory, rates and increasing prices now may be your best time to buy or sell!
Source Credit: Keeping Current Matters