Fortunately, the opposite came to fruition, homebuyers were extremely upset by such challenge, causing a slowdown in the market that stopped a large amount of sales, plummeting home prices in the most discussed and demanded real estate hubs all over the United States.
“Five percent at those pricing levels was enough to take the wind out of sails of the housing market,” a good point by Robert Dietz, executive at the National Association of Home Builders.
Now, we are having maybe the best scenario for homebuyers since the start of the decade, with mortgage rates at 4.5 percent, showing steady signals of stability for the remaining months of 2019. Even Federal Reserve Chairman Jerome Powell assured the fact to the press last month.
Bigger Differences & New Trends
We must acknowledge the new landscape, that looks even more favorable if you take into account the increasing wages at a considerable pace, the fact that some homes are losing value, mostly the pricier ones; something that benefits sellers with properties that are more affordable.
- Lower your DTI (debt-to-income ratio) by paying off debt with the highest monthly payment possible.
- Higher credit scores get the best deals, such as sub-4 mortgage rates.
- The bigger your downpayment, the lower your rate will be.
On the other hand, some believe that rates aren’t low enough to shake the market, and for that to actually happen, according to Mark Fleming, it’ll need to come down to 3.70-3.90 percent in order to reverse the negative effects from 2018. Want to have more insights like this right on your dashboard? Be sure to follow us on Facebook and Instagram now!
The AFTHA Program helps bridge the gap between the haves and have-nots. In short, our mission is to help people who are struggling to become homeowners and have no way to get ahead of their monthly expenses. We freely offer our service to the people that need it most, with the hope of strengthening our economy one family at a time.
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