According to a report from Fannie Mae, 67% of consumers believe now is a good time to buy a home. That’s up three percentage points from the last study. Previously, the trend showed consumers wanting to rent but that reversal is great news for anyone who is considering selling their home.
In addition, consumers surveyed believe now is a great time to qualify for a loan. Everyone who has gone through the lending process over the past 5+ years knows the lending environment was not always friendly. No doubt, lenders are trying to relax strict guidelines somewhat.
Freddie Mac says the average rate for a 30 year mortgage fell to 3.75%. One year ago that number was 4.28%. Some are crediting a weak international economy for sending investors back to the U.S. And yet, there are rumblings the fed will increase short term interest rates in the coming year, which will cause mortgage rates to climb. But really, even if rates go to 5 – 6 % that historically is still a great rate.
If you are thinking about selling home, some buyers may be more motivated NOW due to potential rate hikes that will increase the interest rate buyers can quality for. Now may be an ideal time to sell.
Typical young buyers have stay out of the market in greater numbers following the hit of 2008. They opted to rent. Many of those people will come into the purchase arena at some point. Why not this year? Keep in mind that as rental prices increase that will push some into a buy mode. Gas prices are low. Ironically, any bump in the market that gives consumers added flexibility in their budget is good for buyers. The Federal Reserve is striving to ease lending requirement, according to some.
In other news, Foreclosure’s are declining. In February 2015 there were 303 houses taken back by lending institutions. That is the lowest number since December 2006. While three hundred and three sounds like a lot, some experts say this is a normal level for the Phoenix metro area.