Today's Mortgage Update

Friday, May 21, 2010

by Kevin Holt

Timing the Market?

Is now the best time to buy a home? With today's low home prices, many people may be asking that question. Obviously there are a number of incentives, such as low rates, that make now a good time to buy. But some consumers may still be wondering if they should wait or if now is the best time to take the plunge.

One way to determine whether the time may be right for you to buy a home is to start looking at the rents in your community. When a full mortgage payment (including principal, interest, taxes and insurance) begins to equal or fall lower than rental rates, the market is typically near the bottom – and that means you'll likely begin to see housing prices begin to stabilize or even head back up. In many parts of the country, we have already seen this occur.

The reality is, no one can time the market perfectly and find the exact bottom. But even if you don't, it's okay. Interest rates are near their lowest in decades and home prices are extremely low – which combines to yield the greatest increase to home affordability in years.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Friday, 21st May, 2010:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
FHA 30 Year Fixed	360	4.46%	5.19%	$5.04	%	0.000%	$0.00
VA 30 Year Fixed	360	4.46%	4.809%	$5.04	%	0.000%	$0.00
Conforming 30 Year Fixed	360	4.68%	4.854%	$5.17	%	0.000%	$0.00