Money is an issue when deciding if it’s a good time to buy a house. Your savings, income, and monthly budget will all play a role in determining what you can afford, but your personal finances aren’t the only variable dictating how much house you can buy. Current market conditions will also be a factor, and whether home prices and mortgage rates are up or down will affect how far your money will go.
That’s why recent data from Black Knight Financial is encouraging for anyone considering buying a home. According to their newest Home Price Index, affordability conditions eased in July, marking the first improvement in over a year. One reason why conditions have improved is declining mortgage rates. After spiking at the end of last year, interest rates have steadily declined and are once again hovering just above historic lows.
The other end of the affordability equation is home prices. Prices, though still rising, are increasing at a slower rate than before. In fact, Black Knight’s data shows prices are up only 3.8 percent from last year, which marks 13 straight months of home price deceleration.