Mortgage Rates Drop After Fed Announcement
Mortgage rates dipped last week after Janet Yellen, Federal Reserve Chairwoman, announced that short-term federal funds rates would be reduced to reflect a conservative economic outlook for 2015. Yellen went on to state that the rates may rise later in the year, which many analysts expect to happen. Considering the recent news and strong forecasts for Austin real estate, it seems right now is the best time to save money on a new home purchase in the area.
Austin’s Board of Realtors released its May 2015 housing statistics on Friday, showing that the home prices have increased to a record high for the month. Despite the increases, though, Austin real estate continues to be beneath that of the national average. A report on ABOR.com revealed that “...the median price for Austin-area single-family homes increased nine percent year-over-year to $271,000 in May 2015, while average price increased seven percent to $348,201 during the same time frame.”
Another report on Statesman.com discussed how the future of Austin real estate looks. Eldon Rude, principal of 360 Real Estate Analytics and who advises clients in the housing, development, banking, commercial real estate and government sectors, was summarized in an explanation that the region’s record-breaking housing prices will start to moderate sometime this year and continue for the next few years. He went on to explain that the price of appreciation won’t ease significantly, “short of a major unforeseen economic event.”
In summary, it seems clear that now is the best time to make a home purchase in Austin. Buying now will secure a low-interest loan on an Austin home that’s expected to appreciate over the next fews years. When it comes to a home purchase in this market, taking more time to buy will cost you.