Is it time for renters to start buying again?
Interest rates and gas Prices continue to drop.
Rents are soaring and the supply of good rental homes is limited. 2015 looks like it’s the year for renters to start buying again.
Interest rates for 30 year fixed rate loans are back down below 4% again Fannie Mae and Freddie Mac have announced new low-down payment loans, FHA is still offering 3% +/- down loans and VA & Rural development are still offering $0 down loans.
In most areas of the country you can own a home for much less than you would pay to rent the same property. The average nationally was 4.9% but in Denver it was 11% and 14% in San Francisco. Rents in 2015 are expected to continue to rise faster than Home values and payments.
Good News: Many of the home owners who lost their previous homes to foreclosure will not have to wait the original 4 years to get another mortgage. Fannie Mae just announced that homeowners with extraordinary reasons for the default will only have to wait two years.
More good news: Third quarter growth of GDP in the U.S. was 5% powered by Consumer spending. Low rates and gas prices cut in half have finally got the consumer spending again.
All in all 2015 should be a good year for consumers, home owners and businesses.