It's hard to believe that 2017 is here - but it's only days away! There aren't too many changes for 2017 but here are some things to think about.
Mortgage limits increased for conventional conforming loans to $424,100 - the first time in about 6 years that the limit has increased. FHA limits also increased their limits, in the Minneapolis metro area, the new limit is $332,350,
Interest rates have also seen an increase - the Fed raised rates in December and since the election we have seen rates increase about .75%. That's a fairly large increase in a short time span. What will happen in 2017? No one knows for sure - the Fed has been talking about increasing rates 3 times, that would mean another .75%. However, we don't know that it will happen and maybe something else may affect rates and they could stabilize. This is one of those items that no one really knows until it happens! Economic news will drive the rates as will the stock market.
Home prices have increased over the past year and many think they will continue to increase. Again, no one knows for sure!
There are still many programs available for first time homebuyers to help with down payments. In this area, we have MN Housing and they have a couple different programs. There is also Dakota County bond money, Woodbury down payment assistance, Scott county has a program and so do a few other areas. If you are looking to buy, it's worth asking if there is a program available to help you.
If you are buying outside the metro area, USDA is a great option - especially since they lowered the guarantee fees in October. That will save you money if you are looking in those areas.
Right now is still a great time to buy - interest rates are still low compared to where they have been, home prices are good - all we know for sure is where the rates and prices are today, no one can guarantee what will happen moving forward! If you are thinking about buying, it's worth talking to a realtor and loan officer to see what you can do now.