Opportunity ahead

Have you been watching the mortgages rates raise?

Are you thinking about purchasing a home?

July was a great month for anyone who was trying to sell their home and today we are going to tell you why. First let me say happy Labor Day. I hope you enjoyed your day off with you friends and family. Here in Northville, Michigan, it was a beautiful cool Labor Day.

The Detroit Free Press reported that the first time since 2009, the pace of the housing market is finally associated with a healthy market. If you have been considering putting your house for sale or looking to finally buy a home, now is the time to do it.

There are two reasons why we recommend purchasing a home or selling your current home right now. Those two reasons are,

  1. Mortgage rates are rising
  2. There is consistent hiring

These two factors have influenced the housing market and have provided what it needed to recover. Let’s take a closer look at both.

Mortgage Rates are Rising

Over the summer mortgages rates have risen almost a full percent. Now even with that rise, a 30-year fixed mortgage is still historically very low at about 4.4% last month. Many of us still remember the days when interest rates were closer to 20% than 5%.

Many Americans have decided to capitalize on the low mortgage rates. As an example, let’s say that you calculated that you were able to spend $1,500 on your monthly mortgage payment. This calculation was determined when you purchased your home in May of 2013 and obtained the 3.5% interest rate.

Now the mortgage rates have risen to 4.4%. Between May and today, nothing would have changed in how much you can afford to pay monthly as it is still $1,500. However, what has changed is that you have gotten yourself more house for that $1,500 by acting back in May.

As the housing market and the economy come back, we will see mortgage rates continue to rise.

Consistent Employment

Typically when people feel confident in their employment, they feel more comfortable in making a large purchase like a house. We are now seeing more and more people feeling confident enough in their employment to make the decision to purchase a home.

According to the Bureau of Labor Statistics as of August 2, 2013

"Total nonfarm payroll employment increased by 162,000 in July, and the unemployment rate edged down to 7.4 percent, the U.S. Bureau of Labor Statistics reported today. Employment rose in retail trade, food services and drinking places, financial activities, and wholesale trade.”

While many people feel that Americans are not quite out of the woods, the point is that we are on our way. Because the economy is improving, it presents a window of opportunity that you will not want to miss.

If you have any questions about purchasing a home or selling your current home, please call the Jamey Kramer Group at:

248.348.7200