“I want to buy, but I want to see if rates will go down a little more.”
Does that statement sound like anyone you know? We heard that a lot this year, but it takes the great purchase price and a low rate for the a great deal! Another famous quote we heard this summer goes like this: “Home prices are still low and there is a lot to choose from out there”. False. If it’s priced right, it’s GONE. We have had quite a few buyers miss out on their “great deal” due to waiting to see what rates are going to do. Even here in Olathe, Kansas, we are seeing homes SELL! Want to know an insider tip on what rates could mean in your home purchase?
The latest Housing Affordability Index from the National Association of REALTORS® shows an interesting trend taking place this year that needs buyers’ attention. Most people know that the mortgage rates are still at incredibly low rates but don’t feel there is much sense of urgency. If this is YOU and you are thinking of buying a home – get ready to listen!
This report shows that mortgage rates have fallen from 4.37% in January to 3.81% for June. However, the report shows that the payment as a percentage of income has gone from 12.1% to 13.9% which simply means that buyers have to spend more of their income on a home.
The reason is that the median price of homes nationally has gone from $154,600 in January to $190,100 in June which is a 23% increase. The two major components of housing affordability are the price of the homes and the mortgage rates a buyer must pay. Don’t miss out on an opportunity to find that great deal when you are waiting to see what a mortgage rate is “doing”!
Even if one of those components is going down, the other could have a significant affect as is shown in this year’s trend in housing affordability. In the past few weeks, the effects of which are not show in this report, mortgage rates have been moving up. So if you are on the fence – it’s time to get off that fence and buy!
Moral of the story? Don’t wait and be too late! There are some great Olathe Homes for Sale in our area that we have seen price changes on recently. Sellers still want to sell and if it’s priced right – it tends to go quickly! If you are thinking about re-financing or purchasing a home for investment, give us a call at theChar MacCallum Real Estate Group, 913-782-8857 and we can help! You can always search for homes atwww.findkansascityrealestate.com.