Lowell Real Estate Update: Three trends for this week
Provided by Chris Tryon ERA Key Realty ~ Lowell
There are three things I want to mention this week. First, the FHA released their loan limits for 2014, and they’ve dropped across the board. In Middlesex County, I believe the impact will be minimal – limits dropped from the low $500K range to the high $400K range on single families. But most FHA buyers are lower than that. The more significant shift is in Worcester County and parts west, where loan limits dropped from the high $300s to the high $200s. There are many FHA buyers in that price range, and it will have an impact on the market. If you are a buyer in an FHA loan,update your preapproval to make sure that your qualification amount wasn’t affected. To see the limits for all property types, see here and use “CY2014” on the Loan Limit box: https://entp.hud.gov/idapp/html/hicostlook.cfm
Next, be aware that rates have ticked back slightly from their recent runup. It’s not huge, but it’s enough that I got several calls from people watching rates yesterday – if there’s anyone out there wishing they’d refinanced while rates were low, this is a reasonable second bite at the apple.
And, finally, if you have been reluctant to buy …the Harvard University Joint Center for Housing Studies recently released a paper on five financial reasons to buy a home now. It’s not earth shaking news (forced savings, tax benefit, hedge against inflation, pay yourself and not a landlord, and stable leveraged investment). But it is a nice, authoritative source, and I thought it was a great thing for first time buyers. You can find all 35 pages of the article here, complete with some nifty charts and graphs: http://jchs.harvard.edu/sites/jchs.harvard.edu/files/w13-1_belsky_0.pdf
ERA Key Realty ~ Lowell