Why Now is the Perfect Time to Refinance Your Home!
The housing market just got a boost when the Federal Reserve lowered the interest rates even more. This is great news for those looking to purchase a home but even better news for homeowners. You can now refinance your home to lower your monthly payment, consolidate and pay off/down your credit card debt and even have enough left for home improvements.
Home improvements = higher property values
Homeowners are hanging onto their homes longer and investing in those homes by doing home improvements to accommodate their needs and growing families. Statistically the new build housing market has started slowing down since 2010 making new home buys harder to find.
These findings are based on per million Americans. The National Association of Home Builders (NAHB) research focused on one area of the housing market; single-family housing starts with adjustments for population growth:
- The 1960s averaged 47,997 starts per million Americans.
- The 1970s averaged 53,138 starts per million Americans.
- The 1980s averaged 41,588 starts per million Americans.
- The 1990s averaged 41,710 starts per million Americans.
- The 2000s averaged 41,671 starts per million Americans.
- The 2010s averaged 21,288 starts per million Americans.
A major reason we are seeing these decreased numbers is an increase in homeowners staying put. Before 2010 the average homeowner stayed in their home for 7 years, currently homeowners are staying in their homes an average of 11 years or more.
Now that you are looking for a home you are seeing fewer on the market because of the supply and demand factor.
- Baby boomers becoming empty nesters and retiring which leads to them purchase smaller homes or condos
- Gen X at the top of their earning years and family size needing more space and now having the funds to purchase one
- Millennials are graduating college, starting their careers and are just starting to purchase their first homes
- Homes are only on the market an average of 80 days on the market,
- The market is turning into a seller’s market with sellers raising listing prices
So, with that being said it is the perfect time to look at refinancing your home, lowering your payments with a great new interest rate, paying down some debt and starting those home improvement projects you have been dreaming about.