housing market remains hot

Housing market remains hot thanks to mortgages staying low

The current market

If you’ve been searching for the right time to buy a house, you may have found it. For the sixth straight week, mortgage rates have fallen below 3.7%, with 30-year and 15-year fixed loans now holding rates of just 3.68% and 2.94%, respectively. Two decades ago, 30-year fixed rates were clocking in with mortgage rates around 8%, and three decades ago, it was 13%.

Rise in pending home sales

In a study showing pending home sales for the month of March, the market showed a 1.1% rise from February, which is an 11.1% increase over last year’s recorded data for the same month. The housing market has reached it’s highest level since June 2013, and should be taken advantage of while it lasts. Ideally, the market would like to perform with a bit more consistency, rather than the up and down pattern seen over previous years. The downturn will eventually come as prices rise, and consumers step back, unwilling to pay these higher prices. Currently, less people assert that they will “pay whatever it takes” when purchasing their new home, while more buyers agree to purchase due to the friendly price and presently low mortgage rates.

Buy with low rates, while you can

If you find a house you love, buy it while rates remain low. The same home could still very well be available in the future, though the chance of attaining an identical rate isn’t too likely, according to the past fluctuation of the housing market. If you’re looking to buy or sell a waterfront property in the Palm Beach area, and would like to know more about mortgage rate fluctuation and the current housing market, we’d love to schedule a meeting.