Who Can Afford To Buy Right Now?

Earlier in the year there was a lot of speculation that rates would start increasing dramatically. Well I am happy to be the bearer of good news. Rates are still on the decline. Mortgage rates fell for the fourth week, with rates on the 30-year fixed-rate mortgage averaging 4.63%, the lowest this year, according to Freddie Mac’s weekly survey of conforming mortgage rates.

So what exactly does all of this mean? Well according to NAR (National Association of Realtors) the median home sales price across the nation in March 2011 was $159,600. Here is an example: Purchase price of $159,600 with 20% down ($31,920)=Loan amount of $127,680 with an interest rate of 4.63% (30yr) leaves us with a monthly payment of $656.84. Question...How much are you paying in rent?

Many people are concerned about the down payment amount. There are still low down payment options such as FHA loans (if you qualify). Additionally many lenders are offering incentives such as cash back at closing.

With rates remaining historically low and homes prices still lower than they have been in the last decade I think the question is who cannot afford to buy right now?

Please feel free to apply for a loan directly on my website at www.vanessajones.com or email me with questions: vanessa (at) vanessajones.com

What's Happening in the Real Estate Market

At least once a week someone wants to know what's happening in the real estate market. There are honestly so many different ways to answer that question. Real estate IS currently being bought and sold. The industry hasn't just collapsed and fallen out of existence. While the way we do real estate has changed, the industry itself again IS still alive and kicking.

According to NAR (National Association of Realtors) home sales are on the rise. Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7 percent to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3 percent below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.

Thoughts? Questions?