Home Buyers May Get Help From A Stock Downfall

Home Buyers May Get Help From A Stock Downfall

The Federal Reserve recently raised interest rates, U.S. stocks are tumbling and new worries about the Chinese economy seem to emerge daily. So now is a great time to buy that house you’ve been looking at or rent to own.

Well, not necessarily. But consider: all the worries about China that have battered the U.S. stock market in early 2016 have done the opposite for bonds. More money pouring into Treasury's has driven mortgage rates to a two-month low. A 30-year mortgage slipped to 3.92% in mid-January.

The housing market had already been gaining ground even before the latest drop in rates. Housing, has been one of the strongest parts of the economy over the past year. Sales of new and previously owned homes are likely to finish 2015 at the highest level since before the Great Recession.

What’s more, the number of permits to build additional homes is on track to reach an eight-year high.

Six years ago, builders were producing fewer than 600,000 new homes a year.

Sales of existing homes, are about 25% higher compared to the post-recession low.

Most economists predict new construction and sales will increase again in 2016, aided by a much improved labor market. In the past three years, the U.S. has produced 8.2 million new jobs to give more people entering their prime earning years the ability to buy a home.

The big wild cards are mortgage rates and home prices, both of which could deter buyers. Which is why rent to own is such a viable opportunity for someone or a family to own a home! Click Here to Find Out