It's Never Been More Afforadable to Buy a Home

Mortgage interest rates have hit all time lows in the last couple of years. The recent slight increases has some buyers and investors on the fence waiting to see what the interest rates may do in the near future. However, the recent increases in the rates should not be deterring buyers from making the leap into home ownership. Over the last 40 years interest rates have never been lower. In looking at the full spectrum of interest rates, it seems unfathomable that someone would pay a 13% interest rate to purchase a home but that is the reality of the matter. Our measly 4.5% interest rate should still have buyers jumping for joy that they are able to finance their home at such a low interest rate. As the economy continues to improve and with the housing market stabilizing, interest rates are  most likely just going to keep increasing. This coupled with the new restrictions on mortgage brokers to lend solely on Qualified Mortgages (see link below on CFPB) there has never been a better time to make home ownership a reality. The fact of the matter is, every day that the rates rise consumers are losing buying power. The recent rate increase of about 1%, from 3.5% to 4.5%,  lowered buying power for a consumer who was previously approved for a mortgage of $250,000 now only qualifies for a mortgage closer to $200,000. Losing $50,000 in buying power means a lot less home that you can now get for your money. The market is still in transition but we are starting to see more and more characteristics of a sellers market. This means that buyers will have even less buying power and negotiating power the longer they wait to purchase a home. We know now the the housing crisis is behind us now with the market has being improving for the past 3years and 2014 is no exception. This year is starting strong so if you are thinking of buying a home at the Lake of the Ozarks, don't wait. Call me today at 573-552-7230


Mortgage Rates
http://www.inman.com/2013/12/13/mortgage-rates-are-still-so-low-because-its-a-big-world-full-of-surprises/?utm_source=20131213&utm_medium=email&utm_campaign=dailyheadlinespm

CFPB
http://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in-lending-act-regulation-z/

Improving Market
http://realtormag.realtor.org/daily-news/2013/12/13/housing-crisis-in-rear-view-mirror?om_rid=AAJykL&om_mid=_BSq1ItB83J8xRg&om_ntype=RMODaily