Historically Low Mortgage Rates & Home Prices - A Perfect Time to Buy

Mortgage interest rates in Tampa Bay, Florida are at the lowest levels since record keeping began.  These attractive mortgage rates make that home you've been wanting even more affordable than ever.

Zillow Mortgage Marketplace shows that, for buyers with 20% down and excellent credit scores (740 - 850), the Annual Percentage Rate (APR) for a 30-year fixed-rate mortgage can be as low as 3.69% for the week ending February 26, 2012.  15-year rates are even lower falling this week to as low as an APR of 3.0%.

Similarly, Bankrate shows 20% down/excellent credit 30-year mortgages available at an APR of 3.67% and 15-year fixed rates for the same qualifiers available as low as an APR of 2.96%.  30-year FHA mortgages requiring only 3 - 5% down payments are shown to be available for an APR as low as 3.85%.

Those with less than excellent credit scores will, of course, be required to pay somewhat higher interest rates but, in any case, home mortgage rates have never been lower than they are right now. And, they cannot be expected to fall much further.

Combine these home mortgage interest rates with the fact that Tampa Bay home prices haven't been as low as they are right now in over a decade and you see the opportunity lying before you.

"But," you ask, "what is the outlook for the rest of 2012 and beyond?" The U.S. economy continues to grow at a slower rate than one might hope for, but it is continuing to improve. With the lower value of the dollar and maybe even just a touch of patriotism by corporate executives, manufacturing jobs are beginning to come back to America. Consumers are beginning to feel more confident. The predominant things holding back the economy right now, in our judgment, are the concerns about the fate of European country debts and, of course, the uncertain outcome of the 2012 elections here in the U.S. Both will be resolved within the next 6 to 12 months.

Economists are more optimistic about the outlook for 2012 for housing starts, employment and business spending than just three months ago according to the National Association of Business Economics' latest survey. Housing industry forecasters and home builders similarly expect the housing industry to be on a gradual road to recovery across the U.S., and in Tampa Bay particularly, because of unusually affordable financing options and historically low home prices.

Clear Capital, a California-based home valuation firm reported last month that, after years of falling home prices, Tampa Bay is one of large metropolitan areas predicted to show home price increases in 2012. Tampa ranked sixth in the nation for predicted home value increases

These forces will have two effects over the next couple of years:

• Home prices will begin to rise as demand for homes increases with more prospective buyers in the market and as the current large overhang of foreclosure and short-sale properties are cleared from the market by increased demand from both investors and single-family home buyers.
• While the Fed continues to forecast interest rates remaining low, it is inevitable that mortgage interest rates will begin to creep upward as the economy recovers.

If you are one of those astute enough to have maintained an excellent credit score inspite of the tough economic times of the past 3 years, or, even if you have a few points shaved off your credit score, this is the right time to meet with a licensed real estate broker like Cheryl Stimac and begin the process of qualifying for a mortgage and looking for your first home, the larger home you've been wanting for your family, your second or seasonal-getaway home, or your retirement home.

Stop collecting rent receipts and start moving toward one of the most important investment decisions you'll make during the coming decade - buying a home. DO IT NOW while both home prices and mortgage rates are at all time lows. Don't be caught next year wishing you'd made the commitment. I'd be delighted to help you get started. Call me at 813-263-6806 or visit my website and fill out my brief Request For Tampa Real Estate Information.