This summer, housing affordability trended below historical averages and even fell to a 10-year low, according to HousingWire.
Unfortunately, summer’s low inventory and general affordability trends could have temporarily placed potential home buyers out of the market in the Seattle, Renton, Tacoma regions, and beyond.
The good news, however, is that the nation as a whole is experiencing awfully favorable interest rates, stimulating significant growth in affordability. In fact, in September, the payment-to-income ratio declined, according to Black Knight. This means that on average, it takes a household about 20 percent of their income to make monthly mortgage payments.
This is the second-lowest reading in about two years, and means homes are becoming more affordable. In large part, it’s the lowering of interest rates that has sparked this home affordability comeback.
With this increased buying power, you may be thinking about an FHA or VA loan. With an FHA loan, customers are securing a loan backed by the Federal Housing Administration.
This loan is often ideal for first-time buyers, as well. The flexible borrowing terms, including a lower down payment, can be of great help to those buying a home for the first time, or in a long time.
As rates drop, the FHA loan puts homeownership within reach.
Our VA loan program is also government-backed. Much like an FHA loan, the Veterans Affairs program accepts approved lenders with more flexible and lenient qualifying terms.
Both of these programs are powerful in their own right. And as interest rates continue to boost home affordability, aspiring homeowners are in a really good spot to make a move.
Contact us today if you have any questions about getting a home loan.