With the blossoming of new flowers, for sale signs are also blooming across the country; spring homebuying season is up and running. Despite rate increases, it’s still a sellers’ market for Americans in most of the U.S. Yes, 2016 was a great year for mortgage rates, seeing rates hit record lows; however, with rates lingering in the 4% range, historically speaking, we’re a far cry from saying rates are bad. In fact, comparing rates over the course of the past 50 years, a rate below 5% is really great, even by today’s standards.
Spring time real estate sales are projected to boom this year, but low inventory will definitely present a major increase in demand. So, what does this mean for buyers? Well, the simple answer is homes are selling faster than ever. In fact, homes are selling at an average of 8 days faster than the previous year. With that being said, while conditions are great for purchasing a home, finding one to buy may present problems. You will have competition, even more so with the projected increase of millennials entering first time homeownership this year.
Don’t let the lack of supply discourage you though. Our economy is on the rise and has been for some time; that fact, coupled with job growth and still low rates creates a landscape for optimal selling and buying potential. However, it does make it more important than ever to do your research and ready yourself with a great mortgage lender. You can visit amerisave.com and apply for a pre-approval so that you have a gauge of how much home you can afford. The market is competitive