Mortgage rates dropped below 4% for the first time since November, providing more momentum to an already hot housing market. The average mortgage rate dropped to 3.97% for the week ending April 20, 2017. The drop could motivate buyers who have been reluctant to buy in a rising mortgage rate environment to dive back into the market at a time when housing inventory is shrinking and home prices, on average are rising at the fasted rate since the mid 2014 according to the S&P CoreLogic Case-Schiller Indices.
The impact of a decline in the mortgage rate of about a third of a point would equate to a about a $40.00 drop in the monthly payment of a home priced at $236,000 with a down payment of 20% today vs a month ago. Alternatively the same drop in the mortgage rate would increase the amount of a loan a buyer can qualify for by about $25,000 thus allowing the prospective buyer to qualify for a more expensive house.
Although housing inventory is tight in select US markets compared to 2013 and 2014, the experts believe, and we agree, that now is a good time to buy real estate. And because housing inventory is not as plentiful as in the past, for Sellers, the current real estate market presents a great opportunity to sell for reasons including moving to a larger home, relocating to a more favorable climate, down sizing or being closer to family. So good hunting and remember, The Nimsky Team is here to assist you in not only navigating through all the aspects of a real estate transaction but also in helping you with the process of becoming part of the Prescott community.
Arizona in general and the Prescott Quad cities, Scottsdale and Carefree in particular are magnets for those wanting to relocate or retire to a more relaxed and cost effective lifestyle. Prescott, Scottsdale, and Carefree are welcoming communities with much to offer by way of recreation, education opportunities, social activities, entertainment, and wonderful climates. So come join us and you will be glad you did.