Dallas Ft Worth Shows Healthier Home Signs
When compared against median incomes, there are only a few facts that really matter: Can I afford this home? Is it a good investment? Does it meet my family’s needs? So it’s a bit surprising that the most important housing statistic has gone largely unreported: homes have never been more affordable. Affordability, measured by the median mortgage payment on the current median priced home as a percentage of the median household income, is lower that it’s been in a generation.
Mortgage Rates are Rock Bottom
The 30-year fixed-rate mortgage averaged 3.88 percent (0.8 point) for the week ending March 8, a decrease compared to last week’s average of 3.90 percent. Last year at this time, the 30-year rate averaged 4.88 percent.
The 15-year fixed-rate stood at 3.13 percent (0.8 point), down from last week when it was 3.17 percent. A year ago at this time, the 15-year rate averaged 4.15 percent stretching buyers’ dollars further.
What Does This Mean For You?
For you as a buyer, this means lots of choices, lots of negotiating power and that smart sellers are fiercely competing for your business, both in terms of price and the condition of their homes.
A recent Fannie Mae study reveals that the majority of Americans still aspire to own a home-and for good reason. Owning a home is critical to financial stability and wealth building. A home serves as a forced savings account and provides a solid asset, as well as a place to live. Despite the recent upheaval, the vast majority of Americans still consider home ownership to be important to the economy and preferable to renting. Since the end of World War II, promoting home ownership has been high on the list of the federal government’s priorities, and will continue to be so.
Buy vs. Rent - Pluses and Minuses. These charts and calculators may help you in making your decision.
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