March 1st, 2020 10:23 AM by Jackie A. Graves
A strong economy,
low unemployment, low mortgage rates, and alluring mortgage rates are making it
a great time to buy a home, according to a newly released report from
LendingTree, an online financial services marketplace. The amount of income
that buyers spent on their mortgage payments also dropped from 2010 through
2019, despite higher home prices.
are in a point in your life where you’re considering buying a home today, it’s
a better time to buy than 10 years ago,” Tendayi Kapfidze, LendingTree’s chief
economist, told realtor.com®. “If you can get a mortgage, you’re getting much
lower interest rates, and it enables you to afford more. But that also means
that you’re competing with more buyers, who are bidding up the prices.”
median sales prices jumped 53.5% between early 2012 and summer 2019, according
to realtor.com®. But a decrease in average mortgage rates—by more than a
percentage point from the start of the decade—is helping to offset some
of that uptick. Mortgage rates have dropped from 5.09% to 3.74% during
that time period. That drop could save borrowers hundreds of dollars a year to
tens of thousands over the life of the loan, realtor.com® reports.
Great Recession, borrowers are being more responsible too, Kapfidze says.
They’re “much healthier financially than they were 10 years ago,” Kapfidze
says. “One reason is because of low mortgage rates. If you refinance, [you can]
reduce your monthly mortgage payments.”
are also sitting on more equity. In 2012, nationwide equity reached a low of
$8.2 trillion. In 2019, it grew to about $18.7 trillion.
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