With such strong demand, the prices of homes for sale are rising. While this is ordinarily the first thing house hunters look for when shopping for a new place to live, experts suggest buyers looking beyond the list price and consider long-term costs as well. Taking that in to consideration, buyers will find that today’s low mortgage rates are making homes more affordable now than they have been in year.
“Home prices have held up well, largely due to a combination of very strong demand for housing and a limited supply of homes for sale,” said Lawrence Yun, chief economist for The National Association of Realtors. “Although housing prices have consistently moved higher, when the favorable mortgage rates are factored in, an overall home purchase was more affordable in 2020’s second quarter compared to one year ago.”
Paying less in borrowing costs give home buyers more leverage when considering how much they can afford to put down on a property, how much they should budget for the monthly mortgage payment and even how they can cover closing costs.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.