A recent study performed by Corelogic found that an increasing 40% of people labeled affordability as the #1 obstacle to becoming a homeowner. Yes, property values are rising, but the actual price of a home isn’t the only factor to consider. Purchasing power is a significant piece as well.
What many people are failing to consider is that mortgage rates have dropped considerably over the year making buyer’s purchasing power very strong. Mark Fleming also noted, “If the 30-year, fixed-rate mortgage declines just a fraction more, consumer house-buying power would reach its highest level in almost 20 years.”
In the most recent Freddie Mac survey, the average 30-year fixed mortgage rate was 3.49% during the week ending September 5, the lowest weekly average since October 2016. The average rate in August was 3.62%, the ninth consecutive month of falling mortgage rates!
Taking this all into consideration, this fall is actually a great time to get back in the housing market. Give us a call if you have questions about this information or the housing market in general!