Affordability is a top concern for today’s home buyers. Mortgage rates have risen recently and home prices continue to climb. Shortage of homes drive competition and home prices. For those thinking that it’s not a great time to buy, a recent report may indicate otherwise. The U.S. Census Bureau and the Department of Housing and Urban Development’s newest report contains some encouraging signs on an increase in building permits.
Building Permits Increase
The report found that, in January, permits to build new, single-family homes rose 6.8 percent from the month before. And, because spiking home prices are primarily being driven by a historically low number of homes for sale, any news of an increase in new home construction is good news for buyers. After all, as more new homes are built, the balance of supply and demand improves. In turn, helping slow price increases, competition, and bidding wars. In other words, increasing building permits are a positive sign that the inventory shortage may soon begin to improve, helping affordability and buyers’ chances at finding a good home that fits both their needs and budget.
Here at A1 Mortgage, we know how important it is to choose the right house for you and your companion. We have the responsibility to provide you with the best products and the highest level of customer service possible. With hundreds of loan programs available, we tailor a loan specific to your mortgage needs. So come get pre-approved and start shopping for your dream home by clicking here!