Historically Low Interest Rates: What Buyers Should Know

Historically Low Interest Rates: What Buyers Should Know

The Federal Reserve cut interest rates by .50%, which could benefit the real estate industry just in time for spring. Not only do these historically low interest rates increase buying power, but they also provide an attractive opportunity for first-time homebuyers and people looking for their next property. Are you in the market to buy a new home in the Lone Star State? Keep reading to learn more about the recent rate cut to help you navigate the home buying process.  

Who Will Benefit From These Low Interest Rates?

Lower interest rates encourage more money into the economy, which convinces businesses to invest and consumers to spend and borrow. Experts believe that the real estate industry will hold up well because of the rate cut. This may entice homebuyers to take advantage of the historically low-interest rates. The new interest rate could also slow the steady increase in housing prices, another win for homebuyers. 

Millennials will likely be the bulk of first-time homebuyer demand—individuals born between 1981 and 1997 are expected to account for more than 50% of mortgages by the spring. They are looking for low rates, affordable monthly payments and a beautiful home, of course, which may be possible with the recent interest rate cut.

What types of homes are buyers looking to buy, exactly? Approximately half of January’s sales gains came from people buying new-construction homes. This suggests that the confidence in homebuilders remains high, and low mortgage rates may be motivating buyers to purchase a new home. 

Benefits of New-Build Homes

If you are shopping for a new home, you may wonder what the benefits of buying a new-build home versus a pre-owned home are. From home warranties to open floor plans, there are multiple benefits to buying a new-build home:

  • Home warranties: A warranty covers your new home at move-in, which typically includes limited coverage on workmanship and materials related to various components of the home. They also define how repairs will be made.
  • Energy efficient: New homes are built with more sustainable practices like multi-pane windows, better insulation and energy-efficient appliances.
  • Updated wiring: New homes are designed or hardwired to work with modern security systems, phones, televisions and so much more. This allows you to adapt your new home to your needs and allow for flexibility for the future.
  • Modern floor plans: Pre-owned homes tend to be dark and boxy; however, newer homes are built for modern families and often include larger bedrooms, open living space and kitchens built for entertaining.

The benefits do not stop there, though. Buying a new-build home also provides you with a clean slate and the opportunity to put your touch on the home. With a wide variety of options to choose from, a new-construction home allows you to design a space that fits your life and style.

Do these historically low interest rates have you on the hunt for a new home in Texas? Explore and compare available Perry Homes properties in desirable Texas neighborhoods to find your dream home today!

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Historically Low Interest Rates: What Buyers Should Know

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