San Diego, CA (PRWEB) December 23, 2013
LoanLove.com labels itself as “NOT another boring, stuffy, “fall asleep in your chair” site about loans”. The website distinguishes itself by providing in-depth information about loans in a casual and often entertaining way, with the goal of helping borrowers find loans that they will love. Loan Love has quickly become a trusted destination for current new and expert loan advice, by empowering their readers with first-class knowledge, valuable resources, and connections to top-rated industry professionals. One of the website’s recently featured articles continues to help borrowers by discussing when would be the best time to buy a house in 2014.
The article starts by explaining some of the recent history of the home buying market. It says, “When the mortgage industry began its major struggles in 2007-2008, there weren’t many people looking to buy homes. In fact, many people were having trouble hanging on to the homes they had. Foreclosures and other distressed sales rose, and many of those who were able to stay in their homes were seeing the value of their homes drop to the point where they owed more on their home than it was worth. These facts, combined with rising unemployment left many home owners stuck between a rock and a hard place. But things eventually began to turn around. The Making Home Affordable initiative was launched in 2009, and a series of interest rate drops over the next few years, started to making buying more plausible, especially for first time home buyers.”
Loan Love continues to explain that today’s interest rates have been creeping back up, but there are still many people who are house hunting for a number reasons. The article states that the home buying “sweet spot” has not quite passed yet and buying a home in 2014 is still a good idea for many due to quite a few factors.
For starters, Loan Love points out that interest rates are still relatively low despite recent increases. The article says, “Since more people have been buying homes over the last couple years, home prices have been edging upward, In August 2013 those prices rose faster than they had in seven years. But mortgage rates are still low, as of November, 2013 average mortgage rates were still less than 5% for a 30 year fixed rate. Historically, rates have been as high as 18%, in 1981, and the rates were near 8% in the end of 2007, as the housing crisis broke out.”
Other reasons cited as good reasons to purchase a house in 2014 include:
- The fact that it is less costly to buy than to rent in the long run
- Reduced competition due to more stringent mortgage qualification guidelines
- More safeguards which will soon be put in place which will protect borrowers from inflated fees
- And the quickly drying up pool of foreclosed properties for sale
Regarding the last point, the article states, “With stiffer credit requirements for obtaining a mortgage in 2014, fewer homes will be available at low foreclosed or short sale prices as time goes by, and in future years homes will be almost exclusively at market value. Buying sooner rather than later may give you more options to snag a bargain home.”
For more information on buying a house in 2014, click here to read the full article on LoanLove.com.