The combination of higher prices and lower rates creates a very attractive housing market.
Chicago, IL (PRWEB) June 17, 2014
The Federal Savings Bank thinks a recent report from Corelogic reassured potential first-time home buyers who have been concerned about whether owning a piece of real estate is a valuable purchase. This report follows CoreLogic's home price data, which showed appreciation is occurring at a noticeable pace, and also confirms rising property values which The Federal Savings Bank shared on June 4th.
According to the real estate analysis firm, 312,000 properties regained equity in the first quarter of 2014 compared to the previous quarter. This increase in positive home values brought the total number of U.S. mortgaged homes with equity to more than 43 million. The number of properties with with negative equity dropped from 6.6 million homes in the fourth quarter of 2013 (13.4 percent of all mortgaged residential properties) to 6.3 million homes in the first quarter (12.7 percent of all mortgaged residential properties).
The total aggregate value of negative equity fell from approximately $400 billion in the last quarter of 2013 to $383.7 billion at the end of the first quarter. This was a $16.9 billion decline.
"Prices continue to rise across most of the country and significantly fewer borrowers are underwater today compared to last year," said Anand Nallathambi, CoreLogic CEO and president.
The Federal Savings Bank also adds that apart from prices, mortgage rates are at more affordable levels than a few months ago. The combination of higher prices and lower rates creates a very attractive housing market. First-time home buyers should apply for a home loan now to at least try and get approved for a mortgage to lock in a current competitive rate. The process is well worth the satisfaction of knowing how much one can afford, instead of finding a property first and hoping the lender approves the loan.
Contact the Federal Savings Bank, a veteran owned bank, to find out how you can get affordable financing for a new home purchase.