Home Sales on the Rise
Housing sales in the US continue to climb for the second month in a row. Interest rates are still remarkably low, making houses still very affordable, however it is not expected that these rates will last into 2014.
Home sales have increased 15% since last year according to the National Association of Realtors. In June the sale of existing homes reached over five million. An existing home is one that has been previously occupied, not new construction. Foreclosures and short sales have also been down in recent months. With home sales at this rate it is definitely a seller’s market, and home prices are expected to rise.
Because of the historically low mortgage interest rates we have seen this year, many people have been motivated to buy instead of continuing to rent. Many first time home buyers have come to realize that many times home ownership is not that much more expensive than renting. Home ownership is also an option for many people who may not have previously qualified, because there are many low down payment mortgage programs available today. For example, FHA mortgage loans still allow buyers to purchase a home with as little as 3.50% down. In the greater Chicago area, FHA mortgage loan limits are as high as $410,000.
The current housing market gives many options to home buyers. Interest rates and home prices are on the rise and whether you are a first time home buyer looking for a starter home or you’re looking for an investment property, now is the time to buy. If you have any questions regarding current interest rates or what kind of mortgage options are available to you feel free to contact United Home Loans with any questions you may have at (708) 531-8388.