Mortgage rates and home prices combine to give homebuyers great affordability

Home mortgage rates have reached new lows in response to the recent announcement from the Federal Reserve to work to keep long term rates as low as possible.

These low rates have increased the push for existing home owners to refinance their mortgages. And if you are able to refinance your present mortgage, the new lows in interest rates offer you a great opportunity for maximum saving.

For excited home buyers though these low rates may provide an opportunity for home prices to begin to edge upwards.

This market right now gives home buyers the best combination of low home prices and low interest rates.

From 2000 until 2007 home prices went through a period of rapid growth with the housing bubble. Since that bubble, prices had seen a fairly steep decline, pushed in a large degree by the many foreclosures.

This year and especially in the last few months, home prices seem to have reached a bottom. It looks like home prices may even be enjoying a bit of a recovery.

This is good news for us all - to see home prices back on the mend. This chart is from the recent FHFA home price survey.

What is shows is the home prices are beginning to rebound. They have fallen to the level that matches what might be expected to have been a normal appreciation increase from pre housing boom times.

But what it means for home buyers, the time is now. Home prices are probably at the bottom, and home mortgage rates are also at bottom.

For information about home purchases please visit my Home Buyer Series videos. A good start is with this video.

  You can call me at 423-280-0345 or visit my website at www.RichardSmithHomeLoans.com.