Home values increasing, while mortgage rates stay low

Home prices have continued to rise over the past several months, reaching levels not seen since April 2008, which was shortly after home prices began to fall from their 2007 peak. Since last year, home prices have gone up 4.4 percent, and don’t appear to be going back down anytime soon.

Fortunately, mortgage rates have continued to go down, reaching their lowest levels in nearly 16 months. This means home sales are still on the rise, and many people are choosing to purchase a home rather than rent, taking advantage of the low rates.

According to The Mortgage Reports, demand for homes is still outpacing supply, which is causing the rise in home prices. The National Association of Realtors say that 40 percent of all homes are selling in 30 days or fewer, making it tough to find a good price on a home, especially on a budget.

The average mortgage rate is currently at 4.2 percent for a 30-year conventional fixed-rate mortgage, according to Freddie Mac. Rates for other types of mortgages, such as FHA and VA loans, can be found even lower and offer buyers even more purchasing power.

Depending on the market area, prices of homes have increased a variety of percentages. Prices have increased the most in the Pacific region, going up 7.2 percent over the past 12 months. In the Middle Atlantic states (New York, New Jersey, Pennsylvania) prices have increased the least, only going up 1.6 percent in the last year.

Mortgage companies such as Best Rate USA can help you figure out which type of mortgage works best for you, to help you take advantage of today’s low rates. As house prices are set to continue increasing, now is the perfect time to finally purchase or refinance your home.