We’re sure you’ve heard that the real estate market is hot, insane, or any other word meaning crazy, but it doesn’t have to deter you from buying a home. In fact, now is a good time to buy a home, and we’re about to tell you why.
Mortgage Rates Are Increasing
Home mortgage rates are rising, and experts predict this trend will continue into the rest of 2021. One source predicted a 30-year fixed-rate mortgage will reach 3.4% by the fourth quarter of 2021. But this is still an attractive rate!
The current mortgage rates according to Freddie Mac are:
30-year fixed-rate: 3.17% (+0.20% compared to February 25th)
15-year fixed-rate: 2.45% (+0.9% compared to February 25th)
5/1 ARM: 2.84% (-0.15% compared to February 25th)
It’s a slight increase, but it can make all the difference when you’re buying a home! For example, when rates were at 2.65%, a buyer with a 20% down payment and a $2,000 monthly budget (before property taxes and homeowner’s insurance) could afford a home around $620,00. But with a rate of 3.17%, the same buyer is looking at a house closer to $580,000. That’s a $40,000 difference! If and when rates increase to 3.25%, the buyer is looking at a home selling at $574,000. Take advantage of the low mortgage rates and really maximize your money!
COVID Technology
Society is reopening, but it doesn’t mean you have to be open to the germs of the world again. The pandemic has changed how realtors list and market properties. One of the techniques real estate is going to keep is virtual showings. Technology has made it easier to set up a virtual tour or a 3D for properties. Virtual tours can help you save time and better help you realize what features you do want in a home. As your real estate agent, we go above and beyond to make sure the home you’re interested in is the one of your dreams. We’ll attend showings with you or on your behalf and can video call you from the property.
Better Deals
Homebuilders and developers are struggling to meet the home demand we need to replenish the already low inventory, especially since lumber prices are high right now. So, some builders want immediate cash flow, which can mean a better deal for you. As your real estate agent, we can help negotiate with the developer on your behalf and give you the best price.
If you’re ready to buy or need help listing your home this spring, contact us today! We’d be happy to help you find the perfect home and school for your family! Contact Cummings Team® by clicking here or call or email: 512-619-3186 | cummingsteam@purerealty.com.