Total Mortgage announced that even though the first-time homebuyer tax credit and repeat home buyer tax credit have expired, there are still a number of favorable market dynamics present in the housing market that continue to offer a once-in-a-lifetime opportunity for potential home buyers. “Despite the end of the tax credit, the nationwide housing crisis is opening the door for home buyers throughout the U.S. to purchase an affordable home,” commented John Walsh, president of Total Mortgage. “This generational homebuying opportunity is being created by declining housing prices, record inventories and a very favorable mortgage rate environment where a qualified borrower can lock-in a very attractive 30-year fixed interest rate currently around five percent.”
“This confluence of low mortgage rates and home prices comes along once in a generation,” said Walsh. “Market conditions and Federal Reserve actions will likely cause mortgage rates to move higher within the next eight to 12 months. Therefore, qualified home buyers who are looking to become part of their local community for the long-term would do well to purchase a home while current mortgage rates are close to historical lows.”
Walsh believes that even though housing prices are very close to the bottom in most markets, there is a chance that downward pressure on home values can continue due to an increase in the housing supply. However, homes are undervalued in many markets, and according to the most recent Housing Affordability Index from the National Association of Realtors (NAR) home affordability is close to historic levels.
Total Mortgage experienced an increase of more than 50 percent in purchase loans in April 2010, compared to March 2010, which was driven by borrowers buying homes before the expiring tax credits on April 30. Previously, refinance mortgage loans have been far more prevalent than purchase loans over the last three years.
“The tax credits accelerated the home buying schedules of many borrowers over the last few months,” said Walsh. “However, even though these attractive tax incentives are behind us, we believe that extremely low mortgage rates, combined with high inventories and affordable prices, make right now an excellent time to purchase a home.”
For more information, visit tax incentives www.TotalMortgage.com.