When searching the local market for the perfect place to call home, there are a few things you need to be aware of as a buyer. Understanding the mortgage restrictions with lending and what interest rates you can qualify for are crucial aspects when it comes to purchasing a home. There are also 3 other recommendations to help you with the homebuying process:
Know the Current Mortgage Trends
The latest results of Freddie Mac’s Primary Mortgage Market Survey® shows average fixed mortgage rates drifting slightly lower for the second consecutive week. While rates have somewhat fluctuated, it is projected that 2014 will continue the trend of higher rates. However, in the first 4 weeks of this year, the rates have actually trended lower. Although the rates are seemingly lower, there have been some gradual changes in the overall economic market. The December Retail Sales report revealed gains consistent with moderate growth. Since Retail Sales account for about 70% of economic activity, investors must pay close attention to this data.
Utilize Tools & Resources to Ease the Process
In addition to the market survey and retail sales report, the Homes.com Mortgage Calculator could help you gain a better understanding of what mortgage rates you can qualify for. Knowing the value of your home gives you the opportunity to explore your options and make a wise and rewarding decision. Use the Home Values channel to determine the value of your home today. As always, connect with a real estate professional for additional advice. If you do not have one, locate an agent in your area through the local pro directory.
Do Your Homework with Local Market Data
If you still feel uneasy about pricing, feel free to glance over the Homes.com Local Market Index, which provides pricing trends and recovery rates from the great recession in the top 300 U.S markets. According to the Local Market Index, residential properties across the country had a stellar year in 2013, and now some cooling is anticipated – and welcome – as the market moves back toward a more sustainable rate of growth.
Buying a home can be very stressful thing. When looking for a place to call home, it’s all about educating yourself on market trends and understanding which price is the best fit for you and your family. If you have any additional questions or concerns, visit the Homes.com Q&A channel to connect with a local real estate or mortgage professional.