Interesting news for folks who are on the cusp of purchasing that first home. First, lower gas prices! That always helps. The Energy Department predicts an average U.S. household will save $750 this year on gasoline costs compared with what was spent in 2014, according to its latest Short-Term Energy Outlook.
Second, FHA loans will become more affordable. The Obama administration announced the Federal Housing Administration would lower its annual insurance premiums by 0.5 percentage points from the current 1.35 percent to .85 percent of the loan’s value.
Third, rent is getting expensive. A recent report from Zillow.com shows that rent in the U.S. grew $20.6 billion in 2014 from 2013 – a surge of about 5 percent. The average renter this year paid an extra $26 a month, or $312 more per year, compared with 2013. Rental property demand is outpacing supply.
Finally, mortgage rates have hit a new low since May 2013. The 30-year fixed mortgage interest rate is reported to be about 3.88 percent, down from 4.51 percent a year ago. The 15-year rate is down from 3.56 percent a year ago to 3.00 percent.
If you are thinking about getting in the market, give us a shout!