In recent years, the housing market has been tough for buyers. High unemployment and tough mortgage credit policies have caused a lot of millennials to shy away. However, things are changing. Here are a few key factors that could make 2015 the year to buy your first home.
Low Interest Rates
Mortgage rates have fallen to near-historic lows. This makes housing more affordable right now than it has been in a long, long time.
More jobs were created in 2014 than in any other year since 2000. And, employment for younger households was even better. More jobs were created for those in the age range of 25-34 than any year since 1987! As more and more millennials find jobs, more will be looking to buy homes of their own.
New Fannie Mae/Freddie Mac Programs
Both Fannie Mae & Freddie Mac have introduced mortgage programs geared toward the first-time homebuyers. These programs only require a 3% down payment. Down payments are often the barrier for first-time homebuyers this will help to nullify that problem.
FHA Lowers Mortgage Insurance Premium
FHA announced that effective January 26, 2015, the mortgage insurance premium on 30 year fixed rate mortgages will be reduced by 0.50% – from 1.35% – 0.85%. This change will save the average homebuyer almost a thousand dollars per year.
If you’re in the market for a new home and are looking for mortgage lenders in Joplin, MO or would like to refinance your home, contact our office to see how we can help you.