February home sales nationally increased 5.1%, according to the National Association of Realtors report today. The majority of the buyers are sharp first-time buyers that are taking advantage of record low interest rates, and the $8000 tax credit. According to the 2008 NAR profile of home-buyers, over 94 percent of first time home-buyers, either rent or were living with their parents. Seems as if this group of buyers has had enough of paying rent or living with mom and dad.
Provided that your job is secure, buying now makes more sense than renting. In addition to taking advantage of the $8000 tax credit, 30 year fixed rates are hoovering around 5%, averaging 5.08% nationwide according to bankrate.com. The tax credit now expires December 1st, 2009. Our mortgage calculator on www.renow.com is also available for you to get started.
FHA financing is the way to go right now in our market, as risked based pricing is not a factor. Higher loan limits and lower down payments, make FHA financing more appealing then conventional products. Buyers with larger down payments should also look at this means of financing, as risk based pricing is not a factor. Mortgage Brokers and Bankers, tend to have higher yield spread premiums on conventional products.
As always, get a Good Faith Estimate, it isn’t always just the rate that makes the difference. Loan origination fees, underwriting fees, points, and other closing costs can be confusing so make sure you are comparing apples to apples, when it comes time to buy.
With the stock market climbing, DOW up today almost 500 points, investors are taking advantage of low priced stocks in the same way as buyers should on real estate. Everyone needs a place to go “home” to, so now is the time to get moving.
Filed under: Homes for Sale, Jackson Tennessee, Jackson Tennessee Market | Tagged: Buying a home, Coldwell Banker Real Estate Now, FHA financing, homebuyers, Jackson Tennessee Market, John Orr, Madison County, Real Estate
