It’s an ideal time to buy a house, and the median price for a U.S. home in January was $158,800. According to the National Association of Realtors, this is the lowest median price since 2002. With 30-year and 15-year fixed rate mortgages at 4.87 percent and 4.15% respectively last week; rates are still near historic lows according to Mark Zandy, chief economist for Moody’s Analytics Inc.
With home sales up, bargain hunters are rushing into the market to make their purchases before mortgage rates skyrocket. The Mortgage Bankers Association in Washington has forecasted that “… It may be close to 6 percent by the end of the year…”
Mortgage Interest Rates Decline- (3 Weeks Straight)
According to Analysts at Capital Economics, “Last week marked the third consecutive week that rates continued to decline.”
Home Sales Up
Home sales increased 22 percent from October 2010, the biggest three-month gain since the end of the “homebuyer tax credit” reports the National Association of Realtors.
Analysts at Capital Economics, indicate that “U.S. housing has never been this undervalued”. Both real estate professionals and qualified home buyers should consider the extraordinary buying climate for bargain purchases.