Interest Rates are Lower than Ever!
There’s some great news for anyone looking to purchase their next piece of real estate in Chesterfield and Dinwiddie counties: interest rates on mortgages are at an all-time low! The Federal Reserve, which has already purchased billions in mortgage-backed securities, has pledged to spend an additional $40 billion a month in order to stimulate to the housing market, which is keeping rates low. Further, the Fed predicted that low rates would persist through mid-2015, making now the perfect time to become a homeowner.
For those of you who love the see the numbers, October 2012 saw interest rates on 30-year fixed mortgages fall to 3.36%, compared to 3.94% just a year earlier in October 2011. 15-year fixed rates dropped from 3.26% to 2.69% during the same time period. Additionally, this is the first time since October 2009 that the 15-year fixed mortgage was lower than a 5-year adjustable mortgage! These low rates are causing homeowners to refinance at the fastest pace in seven years, which is currently dominating the home loan market.
Despite a decrease in the GDP and continuously stagnant personal income levels, the housing market is showing signs of improvement. In October 2012, 103 markets from across the country qualified to be listed on the National Association of Home Builders (NAHB) First American Improving Markets Index (IMI), compared to 99 from the previous month (September 2012). These are the highest rates recorded since the IMI was created a year ago.
There are, however, a few things that anyone looking for real estate in Chesterfield County should know about the market due to these low rates. For one, potential sellers are holding on to their properties and waiting for prices to go up, which has created a lack of total homes available for sale. This means that a specific home may have multiple offers and that homes tend not to sit on the market for very long. Also, lenders are now requiring thorough documentation of income and sources of funds before lending money to borrowers; it is highly recommended to have all of your documentation in order before making an offer on a house.
Now’s the time to find your perfect piece of real estate in Central Virginia! Take advantage of these low interest rates while you can; if you happen to find your ideal home in Chesterfield, don’t wait to make an offer. Make sure your paperwork is in order, and you’ll be calling this beautiful area of Virginia home soon.