There is plenty of room to the upside as property values remain 24% below their 1st quarter 2006 peak.
(PRWEB) November 05, 2013
When prospective mortgage clients ask if now a good time to purchase a home is, Peoples Home Equity responds with “yes”. Citing an October 30th report by CoreLogic called, CoreLogic Case-Shiller Indexes, U.S. home prices increased 10.1% in the 2nd quarter, with values rising in 88% of all metro areas recorded. With the housing recovery is doing this well it’s important to choose the right mortgage.
In a press release titled Peoples Home Equity, based in Oakbrook Terrace, IL, summarized the growing number of home sales in the Chicagoland area. The lender highlighted a 25% rise in home prices from September 2012 to 2013. According to the Core Logic report, home prices in Chicago are expected to climb further into 2014. Nationally home prices are 16% above their trough in from the 4th quarter of 2011. However there is plenty of room to the upside as property values remain 24% below their 1st quarter 2006 peak. The best performing cities in terms of price have been Sacramento at +25.9% and Las Vegas 24.7%, both cities reside in states hits hard by the mortgage debacle. National home prices are expected to continue higher by 5.4% from the 2nd quarter of 2013 into the same quarter of 2014.
As for the 12% of metro areas that did not see price gains, Camden, NJ and Virginia Beach, VA both experienced price declines of -9.2% and 6.5% respectfully. However, the decline in property values for these cities should be taken lately as both of these areas were hard hit by hurricane Sandy in October 2012.
Something to think about during a rising housing market is the attractiveness of a fixed rate and adjustable rate mortgage. Given how the housing market is improving, first-time homebuyers have been eager to get approved for a loan at an attractive rate. While many mortgage options are available the two most popular purchase loans are fixed rate 7 adjustable rate mortgages. People Home Equity reminds its mortgage applicants that while an adjustment rate will seem attractive; it should be shied away from if the prospective client is fearful of any sharp rise in interest rates. Even though Peoples Home Equity would not issue a mortgage unless it though the client could make the necessary payments, it still implies that a certain proportion of discretionary income would decline for the lien holder if the rate increased.
For more information about mortgage options please call a representative at Peoples Home Equity: 615-872-0220.