The U.S. economy is improving and, as the economy expands, U.S. rents have climbed. Meanwhile, mortgage rates are down. Not since May 2013 have current mortgage rates been this cheap.
As a result of falling rates, in many U.S. markets, on a monthly basis, it’s may be more expensive to rent a home than to own one.
Furthermore, homeownership is within reach for more consumers than during any period since the last decade.
The expanding economy has softened mortgage eligibility requirements including a drop on the minimum credit score requirements; an increase in “common sense” underwriting; and, an expansion in low-down payment mortgage programs. SDFFCU can help guide you to the best plan to meet your needs.
Looking to buy a home between now and 2016? The market may be ready to help you get approved.
Each month, Fannie Mae polls 1,000 U.S. households for its National Housing Survey. The survey gathers consumer observations on the U.S. economy; and polls for future expectations.
A recent survey shows consumers mixed about the future of U.S. housing. Half of those surveyed expect home values to rise in the next 12 months, and, half of consumers think it would be easy to get a mortgage. On average, consumers expect home values to increase 2.5% annually. Over the same period, they expect rents to rise 3.6 %.
When rents rise faster than home values, it can change the Rent vs. Buy equation — especially with mortgage rates near historical lows. For renters considering homeownership, low mortgage rates help to make homes affordable for the long-term. This is different from rent which often increases from year-to-year.
• For today’s renter, the path to homeownership is simpler and faster than it’s been in several years. There is an abundance of loan programs requiring little down payment.
• Your SDFFCU Mortgage Loan Officer can show you LOW Down Payment options that may not require Private Mortgage Insurance (PMI), making it more affordable.
• SDFFCU can help buyers compare FHA mortgage rates against conventional ones and, when eligible, VA too. VA offers 100% financing for qualified applicants.
Home prices are rising and so are U.S. rents. However, with mortgage rates low, the cost of homeownership is comparatively lower than in the past. If you plan to buy a home soon, this could be the best time for you to act.