It’s an exciting time to be considering buying a home. The combination of market conditions and helpful programs provide opportunities for first-time buyers, as well as for current homeowners hoping to downsize or to buy a larger home.
Favorable Market Conditions
The blend of historically low interest rates and the pace of home sales mean that it might be easier to purchase a home.
- Historically low interest rates. If you were buying or refinancing in 2001, you’d face mortgage interest rates slightly above 8 percent. Today’s lower rates translate into comparatively lower purchase costs.
- Decreasing housing prices. In August 2006, half the houses for sale in the U.S. were priced above $225,000, while the other half were below (this highly watched reference point is called the market’s median price.) Three years later, the median price dropped significantly to $177,000. This 21 percent decline in home prices suggests good deals for buyers1.
- Slow home sales. Generally, homes are sitting on the market longer, which means more choices for homebuyers and a better chance of finding the home that you want.
In addition to favorable market conditions, eligible buyers could also benefit from the current government incentive programs designed to stimulate the housing market and the economy.
- Military homebuyer tax credits.2 Qualified members of the military and certain federal employees may benefit from expanded tax credit rules and extended deadlines. Learn more.
- High conforming-loan limits. If you’re house hunting in a federally designated metropolitan area, you may be able to borrow up to $729,7503 without paying the typical higher interest rates on jumbo loan amounts. Learn more.
- Flexible FHA loans. In addition to low down-payment options, these government-backed loans enable you to use gift funds for down payment or closing costs, and have flexible income, debt, and credit requirements. Learn more.
Reach out to Wells Fargo Home Mortgage
When you’re ready to take the next step, our unmatched tools and top-notch professionals can help you to find the mortgage that meets your needs.