Low mortgage rates throughout Washington State have lowered many housing payments to below monthly rent levels for comparable homes. This gives residents more incentive to buy a new home instead of renting. Other incentives like the FHA 3.5% down payment program encourage new home buyers.
Due to low Washington mortgage rates affecting new home buyers, the Housing Market Index has increased because of the high confidence levels of homebuilders. The Housing Market Index reports as core of 1-100 for homebuilder confidence in the new home construction market. Index numbers over 50 signal favorable conditions and vice versa. So far this year, the HMI has increase by 14 points and doubled since one year ago. As homebuilders continue to report gains, the HMI number continues to increase.
Though these all seem like favorable numbers, there can be a negative side to increased homebuilder confidence. As builders feel more optimistic about their future business, they are less likely to make sales concessions and offer free upgrades. Therefore, if you’re planning on constructing a new home, it may be beneficial to move up your timeframe while home affordability is still incredibly high. Stay up to date on the latest mortgage news, and if you have questions about Washington home mortgage rates and home affordability, contact Sammamish Mortgage today.