Mortgage Rates Hit Ten Year Low

Mortgage Rates Hit Ten Year Low

There has been no better time than now in the last ten years to invest in the real estate in Sandpoint, Idaho and become a proud homeowner. Why buy now? One of the most substantial economic shifts in the previous decade was likely just set into motion last week, i.e., a pause in the interest rate increase by the Federal Reserve, leaving it at its lowest in a decade. When you apply simple math, you will see that the gradual home price increase, along with cheap mortgage rates and the significant increase in the number of available homes are all major factors responsible for the recent revival of home sales. More specifically to Sandpoint, the number of available middle-class rental homes is fewer than the vast number of potential renters. Hence, rental prices are now sky high in some neighborhoods. Fortunately, after enduring a slow year last year, there are now indicators that home sales will pick up significantly this year.

2019 Presents the Best Real Estate Opportunities in over a Decade.

Mortgage rates are more than likely to remain low this year, despite the two projected increments in December. This is due to the struggling state of the U.S. economy, caused by the stunted global growth, the trade war with China, and the direct effects of tax cuts in the outgone year. With the borrowing costs lower than ever, several intending home buyers have taken advantage of the situation to apply for mortgage loans. According to the Mortgage Bankers Association, a 9% increase has been recorded in the number of mortgage loan applicants over the past month, and experts have predicted a continuous rise in the rate of home purchases throughout this year.

Home sales experienced a big jump in January, although it is projected to return to normal in the following months. Despite this, more people can now afford homes, considering the steadiness of the hiring rates and the increase in the average pay growth rate. According to home sales statistics over the past few months, there was a sudden rise in the rate of sales of existing homes with 11.8% recorded in January. What this means is that the lower rates have spurred people to purchase homes. Before January, the rate was pegged at 4.5% (in November) in the aftermath of multiple increments by the Federal Mortgage, and this coupled with the increased yield on the 10-year Treasury note, spurred investors to look into stocks instead. As a result, indexes of the stock market rose steadily until last fall.
The 10-year note, on the other hand, has witnessed a continuous and sharp drop in its yield, from 3.21% in November to the current 2.39% – another pointer to the fact that now is the best time to invest in homes and become a homeowner, perhaps even a landlord. What more could you ask for to invest in real estate? The countries most beautiful small town, and the real estate surrounding Sandpoint, Idaho present your perfect storm opportunity, 2019 is the year. 

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