Regardless of the rise in home prices, there are still affordable financing options for first-time homebuyers.
Chicago, IL (PRWEB) October 02, 2013
The Federal Savings Bank has been sharing positive housing data with its first-time homebuyer applicants. The Federal Housing Finance Agency and S&P/Case-Shiller indices posted reports supporting the fact that property values are steadily rising.
According to the FHFA, its House Price Index increased 1 percent on a seasonally adjusted basis during July. Meanwhile, the 10-city and 20-city composites from S&P/Case-Shiller showed increases of 1.9 percent and 1.8 percent, respectively, during the same time period.
"Home price gains are holding their 12 percent annual rate of gain established by the two composite indices in April," said David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. "The Southwest continues to lead the housing recovery. Las Vegas home prices are up 27.5 percent year-over-year; California, San Francisco, Los Angeles and San Diego are up 24.8, 20.8 and 20.4 percent, respectively. However, all remain far below their peak levels."
While increases in home prices spells good news for current homeowners, as it results in growing equity, more expensive homes could be discouraging to prospective homebuyers, particularly first-time buyers looking to enter the market. However, according to Blitzer, rises in home prices are beginning to slow.
"Since April 2013, all 20 cities are up month to month; however, the monthly rates of price gains have declined," he said. "More cities are experiencing slow gains each month than the previous month, suggesting that the rate of increase may have peaked."
Regardless of the rise in home prices, there are still affordable financing options for first-time homebuyers says Nick, a banker at, The Federal Savings Bank. FHA mortgages have been particularly popular with this demographic due to their low down payment requirements and less-strict qualifying standards.
Contact The Federal Savings Bank to discuss affordable home loan options for first-time homebuyers.