If you’re in the market for a Pittsburgh mortgage or refinance, you’ll be pleased to know that we’re currently in what is known as a Buyer’s Market – meaning the advantages of a home purchase or refinance are mostly on the side of the buyer right now. This is primarily because interest rates are at historic lows and lenders are seeking to attract the right buyer for the right loan – a practice more important now than ever. So whether you’re looking for a new home in Sewickley or you want to refinance your place in Fox Chapel, now is the best time to apply for a Pittsburgh mortgage.
Most people opt for a 30 year loan, as it’s the option that allows buyers to get the most “house” possible and have plenty of time to pay it off based on reasonably predictable income levels. The interest rate on this type of loan was at its all-time lowest rate of 3.97% in February of this year, and as of late April the rate has barely moved and is currently sitting at 3.88%. This means that buying a home hasn’t been this affordable (adjusting for inflation) since the 1950’s. Additionally, many lenders are providing other incentives, such as low closing costs or other discounted services.
People looking for a 15 year mortgage in Pittsburgh will also find that rates are enticingly low. At the beginning of April 2012 the rate on the15 year loan was the lowest it had ever been at just 3.11%. In the last full week of the month the rate had barely inched up to 3.12%, providing plenty of motivation for hesitant mortgage borrowers to take action.
In fact, some in the industry have speculated that this hesitation can be attributed to the fact that there is concern among potential mortgage borrowers that rates may continue to drop and there may be more savings to be realized. However, this type of thinking doesn’t take into consideration that time equals money, and holding off today for the chance of a small savings tomorrow is a lot like gambling considering that the rates are already at the lowest levels they’ve ever been.
Additionally, changes to mortgage legislation recently proposed by the United States Consumer Financial Protection Bureau sought to provide substantially expanded protections for mortgage borrowers. This includes greater disclosure on the part of lenders, better responses to consumer complaints and other benefits.
Overall it seems that the mortgage industry has seen a reversal of roles since the market crashed in 2007-2008, with the playing field between lenders and borrowers being much more even today than ever before. As a result most mortgage borrowers will find that this is indeed a Buyer’s Market, and that now may be the most opportune time to apply for a mortgage in Pennsylvania.
Rates are expected to continue to hover near historic lows for at least the next couple of months, so there’s still some time to act. However, it’s important to keep in mind that as more savvy buyers realize that the rates are as low today as they’re likely to ever be, it’s very important to get the ball moving quickly when you find that perfect home. Take action by capitalizing on this buyer’s market now – call the number at the top of your screen for an immediate consultation and quote. Don’t let the lowest rates in history pass you buy – call us now.
