Jan 30, 2015
It’s an exciting time for prospective St. Louis homebuyers because mortgage rates continue their remarkable downward trend. Rates haven’t been this low for 20 months. What do low interest rates mean for you, a potential buyer? Low interest rates mean that you can buy a more expensive home, for the same monthly payment, as a less expensive home during times of higher interest rates.
To illustrate this idea, here’s an example. With a $500,000 loan and 30 year term at 3%, your monthly payment will be about $2,108. At a 6% interest rate, the monthly amount will be around $2,998, $890/month more than the 3% loan. Since the total outlay is so much less at 3%, it allows purchase of a more expensive home. Basically, instead of spending a lot of money on interest at a higher rate, the money pays down the principal at a lower rate.
Home prices have increased recently, however sustained low rates mean that homes are still reasonable, and buyers’ purchasing power remains healthy. Another positive note is that lenders are approving more mortgages today than they were just one year ago.
One more factor in the mortgage world is job growth. Job growth was over 2.5 million in 2014—great for the economy, but it may result in inflation. Mortgage rates could increase soon in response to inflation rates, which have been unnervingly low for the past few years. Since mortgage rates can and will fluctuate several times a day, it’s a good idea to lock in a low rate as soon as you’re serious about buying a home.
When you are ready to make a move on St. Louis residential property, contact Gladys Manion Real Estate by email or by phone at 314.721.4755. We look forward to making your future home a reality.
Jan 5, 2015
A national survey conducted by Bankrate.com ranked St. Louis third in home affordability among 25 of the nation's largest metro areas. Minneapolis and Atlanta were the only cities to rank above St. Louis.
To calculate these rankings, Bankrate.com compared home prices, insurance rates, and property taxes to each city's median income.
San Francisco ranked as having the lowest home affordability.
The team of St. Louis real estate experts at Gladys Manion Real Estate believe that the survey is a positive and accurate reflection of the real estate market in St. Louis. The survey shows that St. Louis is an excellent place for relocating, buying your first home, retiring or raising a family.
Interested in buying a St. Louis home?
Gladys Manion has been bringing buyers and sellers together since 1936. When you seek our services, you can rest assured that our professional real estate agents will find you the home of your dreams.
Contact Gladys Manion Real Estate today. Call us at 314.721.4755, or send us an email using our contact form.