TYLER, TX (KLTV) - With spring in full swing, declining mortgage rates and rising wages could be setting the stage for a strong home buying season.
GMET’s Brennon Gurley spoke to real estate experts who explain why the current interest rates make this spring the perfect time to buy the new home of your dreams.
Terri Killingsworth, a manager with Tyler Home Mortgage, said, “It is so easy to own a home today compared to what it used to be. It’s easy to work with people who may have had credit issues or income issues.”
If you’ve been thinking of buying a home or refinancing, Killingsworth said you might stand to benefit from lower interest rates.
“With the conventional loan, which is quite honestly what people strive to do if they don’t qualify for a VA loan and haven’t served, you’re going to see those mid-4 percent - 4.25 percent or 4.50 percent.
Kelly Raulston, a realtor with RealEdge Real Estate in Tyler Tyler, said the new lower interest rates mean consumers will have more buying power.
“It’s kind of a sellers’ market right now. Because buyers have that low interest rate, they should take this opportunity to go and purchase that house,” Raulston explained.
Johnathan Wolf, a broker associate with RE/MAX Tyler, said low rates have improved affordability for prospective home buyers, and there’s little indication they will move up drastically anytime soon. Wolf says these mortgage rates are favorable conditions for home buyers.
“Right now is just a perfect time to buy because interest rates fell again. In East Texas, we’re in a wonderful area where our prices are still pretty fair prices,” Wolf said.
She said with the lower mortgage rates, people looking to buy homes right now could get more for their money.
“With the buyers, which is exciting is that because they’ll have to pay low interest overtime. So that means that they would potentially have more house,” Raulston said.
Those lower rates have buyers like Bobi Jo Friesen hitting the market.
“Is it an open floor concept? Do we have lots of lighting? Does the kitchen have an island versus a peninsula? Is the master suite area on the opposite side of the house as the guest bedrooms,” Friesen said.
Friesen and her husband have recently been living in a RV and are now renting a home. They say the lower mortgage rates mean they’ll be able to get more of what they want.
“It’s exciting for the simple fact that we know now that we can afford more of a house because the interest rates are so low. We can look at a little higher price in purchasing a house and give us more square footage,” Friesen said.
However, experts say if a buyer is shopping around for mortgage rates, it would be wise for him or her to be wary.
“Be educated so that you know that you’re getting the best mortgage for you. If you do have doubts, or you do have questions, I would encourage them to call someone,” Killingsworth said.
Experts say many factors can influence your final interest rate, including credit score, down payment, and length of the loan.