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What do higher home prices mean for buyers this Spring?

As home pricing continue to increase, how will this affect people looking to purchase this season? Due to a low inventory of homes we have seen a hike in home prices which can be hard on buyers, especially first-time home buyers.

Traditionally, Spring is buying season- consumers are motivated to start the house hunt. However, due to the increase we are worried about the competition in the housing market. To put it in simple terms, we have an issue with supply and demand.

Don’t get your hopes up, we have good news to share! Due to low inventory, now is a good time to sell. Looking to downsize, upsize or relocate? Eager buyers await any market updates to see which homes become available. Meaning your home will likely sell quicker then usually at a good price.

As rates are still historically low, buying a home now is more affordable compared to 20 years ago. Homeownership is still a great long-term investment in comparison to renting- invest in your future.

Give your friends at Purpose Funding today to talk about your financing options for purchasing your next home. Call us! (844) 427-3863

How Are Mortgage Rates Determined?

Have you ever wondered how mortgage rates are determined?

Mortgage rates are largely dependent on the changes in the market and economy. As common with stock markets, interest rates tend to fluctuate each day and this also applies to the mortgage market. Mortgage rates tend to rise when the economy is strong and drops when the economy falls.

Other factors that can also affect Mortgage interest rates include;
• The length of the mortgage loan: Mortgage rate for 15 years loans is quite lower than the 30-year loan. This is definitely one of the factors that tend to determine how high or low your mortgage rate may be.
• The type of mortgage loan: There are two major types of mortgage rates; fixed rate or adjustable. Depending on any of the types, mortgage rates tend to peculiar to that particular type.
• The amount of the loan. This is because it presents a higher risk and most lenders tend to base their mortgage rates based on the amount of risk the lender feel is associated with the loan.
• The amount of your loan vs. the value of the house ( known as LTV). The lower the loan, compared to the value of the home will generally yield a lower interest rate.
• Your credit score: Individuals with great credit score tend to receive mortgage loans at a lower mortgage rate than others.

Every client is different and we look forward to discussing your needs and finding the best loan possible, for your individual situation. Get your free mortgage rate quote today, Purpose Funding can help! Give us a call or fill out our online form now.

Toll-Free (844) 427-3863