By the Kent Redding Group
AUSTIN, TX. – Right now, is an excellent time to buy a home because thanks to historically low mortgage interest rates, homes haven’t been this affordable since 1980.
That’s right, long term affordability has never been better because mortgage interest rates are about 4.5% now compared to 16% in 1980.
Sadly, home affordability could be threatened though if mortgage interest rates continue to rise so if you’re serious about buying a home in Austin Texas, or elsewhere in the United States, now is a great time to buy before rates increase.
Changes to The Mortgage Interest Deduction
Another change that could make buying a home this year more competitive is the recent changes to tax laws from the Republican tax bill which takes away a homeowner’s ability to deduct mortgage interest on $1 million worth of debt down to $750,000.
The mortgage-interest deduction has been a huge incentive to homeownership, but the new limits could deter first-timers. Millennials are increasingly renting longer and are able to save up a bigger pot of money for a larger down payment, Zillow's CEO, Spencer Rascoff, said on an episode of Business Insider's podcast "Success! How I Did It." Ultimately, he said, millennials are skipping starter homes and going straight to the $1 million range.
Search for Homes in Austin TX
To get started with buying a home in Austin Texas contact the Kent Redding Group today by calling us at (512) 306-1001 or click here to connect with us online.