Today mortgage lender Total Mortgage Services stated in a press release that despite the expiration of the first-time home buyer and repeat home buyer tax credits, there are exceptional market factors making now an ideal time to purchase a home.
The tax credit was designed to stimulate demand for housing, and was largely effective in doing so. Many credit it with keeping home sales from completely flat-lining during the last two years. Many are unsure as to the future of housing after the tax credit, but according to Total Mortgage President John Walsh, “the nationwide housing crisis is opening the door for home buyers throughout the U.S. to purchase an affordable home”.
The most favorable market condition for home buying are very low mortgage rates. While most experts expect that current mortgage rates will rise before the end of 2010, they are still very low at the present time. The average mortgage rate on a 30-year fixed rate mortgage ended last week at 5.06 percent. This is about a quarter-point higher than the historical low in December 2009, but still very low compared to historical norms.
Although the Federal Reserve reaffirmed its commitment to keeping rates low for “an extended period”, it is clear that the Fed to raise the prime rate at some point in the near future. Market conditions have caused considerable volatility in rates, which are expected to fluctuate in the short term but trend higher in the long term.
In addition to low current mortgage rates, housing prices are also extraordinarily low. The most recent figures presented by the National Association of Realtors’ Housing Affordability Index indicate that homes are seriously undervalued in many markets, and are almost close to historic levels of affordability.
Don’t miss out on this remarkable buying opportunity. Call Total Mortgage today at 877-868-2509 and see what our mortgage experts can do for you.
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