A Holiday Present for Home Shoppers

There are some little packages that could be the best gifts this holiday season for those seeking to find a home to buy at Christmastime.

The first of three packages that I have is that starting in 2022, buyers are eligible for Fannie and Freddie government backed mortgages up to $647,200. In 2021, the loan limit was $548,250. Fannie and Freddie buy loans from lenders and package them into securities that are then sold to investors. Fannie and Freddie don’t make the loans, but the guarantee by the Federal Housing Finance Agency applies to about half of the $11 trillion mortgage market. These new loan limits give buyers more opportunity to buy a home and utilize government backed loans.

The second package for buyers is that the home-price growth has slowed. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices, was at 19.5 % in September which was lower than the 19.8% annual rate in the month prior. Across the nation, the median existing-home sales price is now $353,900 according to the National Association of Realtors.

You might be interested to know that the number of first-time homebuyers fell by 8 percentage points. This means that many who were trying to buy might be taking a break and for those who are ready, this could be an opportunity to buy.

The third package for buyers is that the average rate on a 30-year fixed-rate mortgage was 3.1% as of the first Wednesday in December according to Freddie Mac. This is a very good rate in a time when the housing market continues to show remarkable strength.

You should be aware that there was an increase of 25% in the number of people working in the U.S. in real estate credit as of September. Similarly, there are almost 50% more mortgage brokers working in the industry than a year prior. My take on the increase of people in the industry is that the industry needed extra help and brought more people on board, but I also want to remind you to interview any persons that you seek to represent you in obtaining a loan. Experience is important in these times. The products that are available to help persons get into the home of their dream are ever changing.

You should know the resources that are available within your community. You should also know that many variations of products are available that offer different payment options and downpayments. Having a mortgage advisor who has your best interest in mind is the best place to start. It is always a good idea to have a team where you have a local telephone number and people who live in your community. This means that your real estate professional, your mortgage advisor and you all work together.

Be sure to find a licensed advisor that you know serves your best interests, your community, and has history in the community as well as will be there for you for the duration. Call 360-607-9312 or email MPattullo@FinanceOfAmerica.com for help preparing your credit application to best evaluate your mortgage options. We are your local advisor.

We lend where we live,
Mike