Summer is almost here and homebuyers will be looking for the home of their dreams. So, why is this time of the year great for those looking to buy a home for sale in Odenton, MD or Gambrills, MD? Keep reading to find out.
Mortgage Rates Are Low but They Won't Stay Low
Right now, mortgage rates for a 30 year fixed mortgage are steady at about 4 %, but this will not last. The real estate marketplace, Zillow, is predicting a 1% rise in rates by the end of the year.
While such a small increase of 1% may not sound like something to worry about, the truth is that a 5% rate on mortgages means buyers may not be able to afford the home they want. That 1% can really add up over time. Buyers want their homes before they have to pay much more for them.
More Loans Available
The availability of loans has grown in the last year. This means that some buyers who could only get approved for an FHA loan last year may be able to get a conventional loan with Private Mortgage Insurance. PMI protects lenders in case of buyer default. Due to competition between lenders, it is easier to be approved for a loan, receive more options, and be offered lower rates and terms.
Buyers Have More Confidence
More and more people are regaining faith in the housing market. This is shown by the results of Zillow's gauge of the health of the market, ZHCI, or Zillow’s Housing Confidence Index.
The future is looking good for would-be buyers, such as renters who are looking to buy a place of their own. Homeowners can appreciate the flow of prospective buyers and feel more confident in their ability to sell their homes.
Rent is High and Going HigherOne reason for high rents is there are fewer apartments and homes from which to choose. The average renter pays 30% of their income for rent. Conversely, the average homebuyer is likely to pay just slightly more than half of that at just over 15 percent of their income. In many cases, it makes more sense to buy than it does to rent. Many renters with the ability to save money for a down payment on a new home are doing just that.
According to Zillow's data, there are 25% more renters looking to buy new homes than there were a year ago. Last year, 4.2 million people were looking to go from renting to home ownership. Now 5.2 million renters are seriously considering buying their own home.
If you have been considering buying a home, now is the time to get in and buy. Are you looking for real estate for sale in Gambrills MD? Are you interested in Gambrills MD real estate for sale? Contact us and let us help you find the home of your dreams!