If your goal in 2016 is to buy a home in the Greater Boston Real Estate market, you'll need to keep this info in mind:
- The Federal Reserve increase in interest rates was a very eager .25% and has had little to no effect on mortgage rates. Current rates are hovering near the same values as those we saw at times last year. The current thirty year fixed rate is at 4.11%, the current 15 year fixed rate is at 3.38%.* It is not anticipated that the rates will increase greatly over the first half of the year so the Fed increase should not substantially effect a buyer’s ability to qualify for a mortgage in the near future when buying a home in MA.
- Overall mortgage financing has become a bit less difficult. After the recent financial crisis, mortgage lending practices followed the pendulum swing from anything gets a mortgage to almost no one gets a mortgage. Now, the pendulum is swinging back to the middle and making it a bit easier for buyers to obtain financing. A sign of the softening is the FHA has reducing its mortgage insurance premiums on FHA loans by .5% - this translates into more people being able to afford FHA loans.
- Greater Boston Real Estate demand should remain high. The past year or so in the Boston Area real estate market has been extremely competitive – as any buyer will tell you. Areas within and around the city proper are experiencing building booms with large companies, small start ups, academic and medical field and related service industries expansion, bringing in relocating families, working singles, and even retirees. A recent report by the Dukakis Center for Urban and Regional Planning noted that “the labor force in MA grew at twice the rate of the national average” in 2014-2015. This tremendous demand is pushing up area home sales and home sale prices.
So, the good news is that the money to reach your goal buying a home in the Greater Boston Area is available at terrific rate and with less painful scrutiny from the lending institution. The other good news is that you will be purchasing in an area experiencing a tremendous and multi-pronged economic growth with strong prospects for increasing home values.
To see properties currently available for sale throughout Greater Boston Area visit our website today.