US Mortgage Rates Lowest in Years

Homes throughout the US are more affordable now than what we’ve seen in years and with mortgage rates lower than most of us have seen in our home buying lives, now might be the best time for investors to considering buying.

Ok, for local buyers it’s a little easier said than done.  International investors have a bit more paperwork to contend with but they can still get financing.  So consider this….

"Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers,  ignoring a large share of otherwise creditworthy buyers," Lawrence Yun, the National Association of Realtors' chief economist, said in a news release.

Yes, mortgage rates have fallen to levels seen in the mid 70s and before that, the 50s!  That means 4.15% for a 30 year fixed mortgage.  This, coupled with the lowest prices in years, should give investors more reasons to consider US real estate.  

Now, let’s look at buying and renting.  It can be done just about anywhere.  Florida is the destination of choice for many South Americans as well as European buyers.  The climate is the biggest draw followed by year round golfing and beaches galore.   One thing to also consider, that I think many investors tend to not think about, is that in the years to come the US baby boomers, those born from the early 50s to the mid 60s, will be retiring and looking for a relaxing lifestyle.  They will want to remain active and independent and Florida, as well as other parts of the South and South East will be a big attraction.

  This means any property owned and rented today will have a certain attraction to buyers 7 to 10 years down the road.   On the other hand, some of those  boomers won’t want to own and will prefer to be “maintenance free” and rent their   place in the sun.  And we’re already seeing what’s happening in the rental market – occupancies are up and owners are very happy. 

It’s more convincing now than ever before.  The rental market throughout the south and southeast will continue to do well.  Returns of 6% per year or more are out there.  Housing will recover so a resale at some point in the future (no flipping allowed) will also bring profit.  How much remains to be seen and we all have to understand that the gains people saw in the past decade won’t be there, if ever, again. 

Are you looking for US investment properties? Are you looking for a discounted short sale or bank owned property?  John Breaux can be reached at john@marathon-group.cz or +420 602 355 810 or +1 504-208-4331.

Information contained herein is for informational purposes only.  Please check with your tax accountant and/or legal adviser before making any investment decision.