Summertime: pool parties, barbecuing on the patio, lawn games, and enjoying air conditioning inside when the heat is too much. Summer can prompt you to consider home buying especially if you feel like your current home doesn’t give you the space to entertain or your backyard is too small. Many home buyers prioritize space for entertaining when they are searching for their dream home.

This summer is a prime time to start your home buying journey. Why? This summer’s low mortgage rates are making it easier to afford that monthly payment. With school not in session, uprooting and moving is easier to accomplish.

Having the right information about home buying is important because the wrong information might keep you from taking action! 

Let’s clear up any ambiguity with a couple True or False questions about Home Buying:

 

True or False:

You have to have a credit score of 650 to purchase a home

 

FALSE:

Many lenders allow a credit score of 580, but 53% of surveyed consumers thought that you needed a credit score of 650 to purchase a home**

 

True or False:

You have to put down 20 percent to buy

 

FALSE:

Down payment assistance programs and low down payment programs exist and you can put as little as 3 percent down. Only about 1 in 4 consumers are aware that low down payment programs are an option**. 40 percent of consumers didn’t know how much money was required to put down

 

Summer 2019 Mortgage Interest Rates

Freddie Mac reported on June 27, 2019 that the 30 year mortgage rate was at the lowest level since November 2016.*

The 30 year fixed rate mortgage averaged 3.73 percent, which is down from 4.55 percent last year this time!*

What does that mean for today’s home buyers? Lower interest rates affect your mortgage payment! Lower interest rates can absolutely be the game changer that makes purchasing a home this year possible for you. If you are currently renting, you might be surprised that you could purchase a home with a monthly payment roughly equivalent to what you are paying in rent every month!

What is the best first step as a potential home buyer? Gather information! Start a conversation with a real estate agent who will start vetting scenarios and explaining the terms and timeline of home buying. Our real estate agents work with first time buyers, repeat buyers, investors, and are happy to hold your hand through the process. 

Sam Khater, Freddie Mac’s chief economist, says:

“In the near-term, we expect the housing market to continue to improve from both a sales and price perspective.”*

 

Take Advantage of Low Interest Rates

When mortgage rates drop, some would-be buyers wait on the sidelines for interest rates to go down even further. There are no guarantees for how long interest rates will stay at this level, and economists or TV pundits can give different answers to that question. 

However, if you are interested in buying a home right now with interest rates at 3.73 percent and you wait twelve months and interest rates increase a full percentage point higher next year, then you will wish you would have taken advantage of the below four percent interest rate.

There is no obligation when you contact one of our agents.

For more information about home buying this summer, contact us today! 

 

 

Sources:
*https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-3  
**https://www.housingwire.com/articles/49271-most-consumers-overestimate-what-it-takes-to-get-a-mortgage  

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.