Talk about the economy and the housing market has been a hot topic over the last few years as we assess where our nation has come from and where it’s going. Still, while it might seem that purchasing your own house is several years off, the truth is that owning the home of your dreams hasn’t been so affordable in decades.
Yes, housing prices have begun to rise since 2007; however, one of the largest determining factors of monthly mortgage payments is interest rates. As it currently stands, those rates are at a historical low, which means that you now have an amazing opportunity to save money on a home.
To place things into perspective, while the average home price has increased from $125,000 in 1990 to $195,000 in 2013, mortgage rates have actually decreased from 10.27% to 4.31%. In addition, APR rates went from 10.439% to 4.439%, which means that average monthly mortgage payments have decreased from $897.59 in 1990 to $772.92 in 2013.
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So what do these numbers mean for you? In short, if you aspire to be the owner of your own home, don’t assume it’s out of the question! Plain and simple, those low interest rates have nowhere to go but up and they’re a steal, so take advantage of this wonderful market and make your dreams a reality.
