By Mike Miles
What movie is this line from … “love for sale … appetizing yummy love for sale”? Feel free to message or email us your answer. (Hint: It’s a top-5 movie of all time … for those of us over 35 or 40 ☹)
That’s the theme for today’s short post. That’s how I’m expressing my emotions to all the readers … by posting something that’s actually a quick read. Here it goes.
True love is hard to find because finding it means you have discovered something that has several combined qualities that you are attracted to. Well, in this Valentine’s Day week, if you are in the market (as a homebuyer), you’re in luck.
Many potential homebuyers have been sitting on the sidelines after last year. It was a very competitive market and buyers were either outbid or discouraged from buying for fear they may overpay for a property. The good news is that patience has paid off. It’s true that the inventory of homes for sale still favors the seller (versus the buyer) making it potentially another seller’s market this year. However, it’s also true that year over year price increases are the slowest they have been since 2012.
According to CoreLogic, the national average home price from December 2017 to December 2018 increased 4.7 percent. The annual home price peaked in March of 2018 at 6.4 percent and decreased as the year progressed. CoreLogic is forecasting an average annual price growth of 3.9 percent in 2019.
In addition to this, mortgage rates have been decreasing for all loan products. The 52-week range of rates shows the following:
- 30-year fixed conforming – a decrease of .6 percent
- 15-year fixed conforming – a decrease of .45 percent
- 30-year fixed FHA/VA – a decrease of .5 percent
- 30-year fixed Jumbo – a decrease of .5 percent
Depending on an amount financed, these rate decreases could equate to a savings of at least $30,000.
It’s rare to find these two core components of home buying consideration lining up together. If you decided to wait out the market last year … you’re in a stronger buying position than you were before. Take advantage of things this year. Love is in the air for homebuyers … don’t let it slip away.
This weekly Sponsored Column is written by Mike Miles of Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation. Contact Fountain today.
Mike Miles NMLS ID: 265927; Fountain Mortgage NMLS: 1138268