The housing market in San Francisco is notoriously competitive and expensive. So expensive, in fact, that it made #1 on Zumper’s “Top 10 One-Bedroom Median Rent Prices” list for October, 2016. Although some might be surprised to know that San Francisco beats out even New York’s rental prices, it’s hardly a new concept for the bay area’s largest metropolitan. This isn’t the first time “San Fran” has made number one either; it topped the charts all the way back in 1986 too. Home values have been on the rise in the area as well, with the 2015 median home price estimated at $1.36 million; however, there have been some recent indications of a slight (and much-needed) cool down.
Despite it all, SF somehow manages to attract the 5th highest amount of interest in the United States from prospective homeowners living outside the region looking to settle down in a new city. It’s not impossible to make it work here, it’s just a matter of being wise about your investments and your timing (as much as is conceivable). If you’re in a position to purchase a home; it’d would be a prudent time to jump off that fence and into homeownership with some of the lowest mortgage rates in history; while they’re still around.
Historically speaking, rental rates for housing are an excellent indicator of what’s happening within the local economy. While housing is more expensive here than in most areas of the country; those who are able to finance a mortgage get the advantages of homeownership that renters miss out on. These perks include multiple tax deductions and the benefit of a growing home equity position. With The Federal Reserve’s recent decision to hold off on a rate hike; a December 2016 increase becomes more and more likely. The opportunity to obtain one of the lowest rates ever is still possible for the time being, but waiting too long to make the decision to lock, could end up costing you thousands of dollars.
GSE giant Freddie Mac recently estimated that interest rates would reach a 40-year low in 2016. We may have just bottomed out, but only time will tell. For borrowers who are risk-adverse, there’s no time like the present to discuss your options with a professional. At the very least, it can’t hurt to get a no-cost, no-obligation quote and see what options you have.
Mortgage rates have been so low for so long, that many potential homeowners are being lulled into a false sense of security. It’s important not to get too comfortable with the current market, however. It’s also wise to consider locking before the uncertain Presidential election results on Nov. 6th; while rates still hover at near-historic lows, under 4%.
These days, there are a lot of no- and low-down payment programs available meant to help first-time buyers segue smoothly into the world of homeownership. Veterans utilizing the VA programs are allowed to finance up to 100% of their mortgage, while non-military consumers can take advantage of FHA loans where as little as 3.5% is needed for a down payment. Even conventional loan programs have options that make needing to come up with 20% a thing of the past, as Fannie Mae’s Home Ready® program allows up to 97% financing.
At Network Capital, you’ll save money with our “no lender fee” policy. Lender fees include origination, rate-lock, processing, and underwriting fees; which many banks and lenders opt to charge. With rapidly advancing technology, and an easing of lending standards, financing your future is faster and easier than it’s ever been. Speak to a licensed expert in your state today to take advantage of the favorable market conditions, and start enjoying your life with greater financial stability and freedom.
Never miss a beat in the world of mortgages. Our friends at The Mortgage Radio Show, hosted by Teresa Strasser (of The Adam Corolla Show) and mortgage expert Sean Meador (NMLS 870696) keep you up-to-date on the latest in housing and finance news. San Francisco residents can tune in to AM 560 KSFO on Saturdays from 4-5pm PT.