ENVOY MORTGAGE Blog

The number of recent “surprise” reports on the U.S. housing market from California to Florida, are speaking of a nascent recovery in the U.S. housing market that could be the beginning of the end of the decline in that market, and at the same time, could help establish a floor on home prices in the near future. As many say of this market, “vultures” are watching the prey and snapping it up from the foreclosure trap. In fact, current economic conditions are perfect for home buying. If you are interested in buying a home, you will never again (or at least not until the next bubble bursts) have an opportunity to buy cheap homes at such convenient interest rates.

But you don’t actually need a loan if you have cash. It’s a great opportunity to buy a home either to live in or to invest. Home prices are bound to come back once economic conditions improve, and they will improve. Normally, when interest rates are low, home prices are high and vice-versa. Today, both home prices and interest rates are also very low. In fact, home affordability rates are already at a decade high, making it easier for potential households to afford homes out of income. Of course, there is a catch: having a job that can support a steady income is not something that can be taken for granted in today’s economic environment. Thus, that is the reason why a strong recovery will not materialize until the labor and unemployment situation stabilizes and starts to improve. But if you are looking for a home, this is the best time to buy. In fact, if you are waiting to pick the bottom of this housing and interest rate market, then you will probably miss a once-in-a-lifetime opportunity.

For more information, please contact our Assist-2-Sell office at (314) 993-6023.  Look forward to hearing from you.