This summer nationally was very successful in the real estate business and shows promising numbers that our economy is slowly making its rebound. In August of 2014, home resales topped five million units for the third consecutive month, despite there being a severe limitation on homes that are for sale.
The mortgage rates we continue to see at incredibly low rates will not last long into the future. Demand for homes continues to grow and outpace the supply of available homes for sale. With the demand continually growing mortgage rates nor the price of homes will continue to stay at a low price. With the high demands we will begin to see prices begin to raise. To date, we have already seen a snapshot of this in our Summit County market. With the availability of low and no down payment mortgages it is still influencing first time home buyers as well as repeat homebuyers getting fantastic rates.
According to findings from NAR, this August higher than months proceeding it as well as previous years realtors are closing 80% of pending sales within 60 days of the mutually executed contract. again, this is showing positive signs in the rebound of the housing market across the country, not just solely specific to the Summit County region.
The good news is that today’s home buyers are able to finance their purchases via a growing number of mortgage programs, including low-downpayment loans, no downpayment loans, and loans for luxury homes.
Among the most popular options with today’s low-downpayment buyers is the FHA loan. FHA loans require just 3.5% down and offer flexible mortgage approval terms, including an allowance for average and below-average credit scores.
Another common low-downpayment option is the Fannie Mae 95% program. This government-backed loan tends to work well for buyers with above-average credit scores who are buying single-family, detached properties.
For buyers in rural and suburban areas, the USDA loan is an excellent no-downpayment option. The zero-down loan is backed by the U.S. Department of Agriculture and can provide below-market mortgage rates to applicants who use it.
With the variety of loans that are available to qualified buyers exhibit another reason why the turn in the housing market is upon us. Loans are available and not at astronomical rates as well as the ability to negotiate on sales price. With more buyers and less homes we will see loan percentages go up with the price of homes, so if you are looking to purchase now is the time!