(PRWEB) September 28, 2013
The limited U.S. housing inventory is starting to grow, according to The Wall Street Journal. Citing decreasing home sales and new buyers putting their properties on the market. The Federal Savings Bank highlights that it's becoming easier for interested homebuyers to find an affordable property.
Due in part to limited inventory, home prices have risen considerably over the last year. This had led to greater equity, which in turn has given current homeowners the push they need to put their homes on the market.
Even better, the homes that are entering the market now are not the distressed properties that flooded the market during the housing downturn, the Journal reported.
Decreasing mortgage rates add to affordability
More homes on the market will make it easier for buyers to find an affordable deal, as greater inventory means less competition. However, interest rates are also adding to recent gains in affordability, as news that the Fed will not be tapering its bond-buying program has led to drops in rates that were on the rise.
According to data from Freddie Mac, a 30-year fixed-rate mortgage averaged 4.50 percent during the week ending September 19, down from 4.57 percent the week before.
"Mortgage rates drifted downwards this week amid signs of a weakening economic recovery," said Frank Nothaft, vice president and chief economist at Freddie Mac. "This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program at its September 12th and 13th monetary policy committee meeting. It also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May."
Whether seeking financing for a new home purchase or a mortgage refinance, lower mortgage rates spell good news for homebuyers. By locking in an affordable rate now, borrowers can ensure financing while avoiding the higher costs that will come with inevitable rate increases in the future.
Contact The Federal Savings Bank to discuss home financing options, as well as special programs available for U.S. veterans.