Homeownership closer than ever!
Housing affordability is up nationwide due to low-interest rates and home prices as National Homeownership Month begins in June, according to a recent release from the National Association of Home Builders (NAHB).
In addition to lower prices and interest rates, low-down payment programs offered by Fannie Mae and Freddie Mac is also helping creditworthy borrowers who cannot afford a large down payment for a mortgage. These programs offer down payments as low as 3 percent for eligible first-time homebuyers.
Homeownership is the key of building wealth, since it is often a primary source of net worth and a step toward accumulating long-term personal financial assets. It is not only limited to financial freedom but also building stronger communities and personal achievement.
The National Association of Realtors (NAR) recently reported that pending home sales increased in April for the fourth consecutive month and reached their highest peak in nine years. The steady gains in contract activity each month this year highlight the fact that buyer demand is strong
“Homeowners looking to sell this spring appear to be in the driver’s seat, as there are more buyers competing for a limited number of homes available for sale,” Lawrence Yun chief economist from NAR.
“The housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers—especially first-time buyers—are able to obtain a mortgage,” Yun adds.
Realtors expect for total existing-home sales in 2015 to be around 5.24 million, an increase of 6.1 percent from 2014. The national median existing-home price for all of this year is expected to increase around 6.7 percent. In 2014, existing-home sales declined 2.9 percent and prices rose 5.7 percent.