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2013 Roadmap For Redding Home Buyers and Investors: The Improving Market Index

City-by-city, Including Redding, California, the U.S. economy is improving. Based on data from the National Association of Home Builders (NAHB), the so-called Improving Markets Index now includes 258 metropolitan areas nationwide.

To be deemed “improving”, a U.S. city must show broad-based job growth, housing growth, and a rise in median home prices. The index is more than 10-fold higher than it’s reading from October 2011, the month largely believed to represent the bottom of the U.S. housing market.

71% Of U.S. Cities Including Redding are Now “Improving”- 

The Improving Market Index is a monthly NAHB metric. In order to qualify, a given metropolitan area must show six consecutive months of improvement with respect to real estate, as measured by home price information from Freddie Mac; with respect to employment data, as measured by data from the Bureau of Labor Statistics; and, with respect to new housing construction, as measured by data from the Census Bureau. 19 cities were dropped from the list in May. 4 were added.

Redding Has Some of The Best Deals In Housing For 2013 – 

The U.S. housing market has been broadly improving since October 2011 and this month’s Improving Market Index may prove to be a roadmap for mobile first-time or repeat home buyers; or for bona fide real estate investors in search of medium-term home appreciation. This is because U.S. markets deemed “improving” have each shown six consecutive months of economic growth beyond just home prices. Because mortgage rates remain entrenched below 4 percent, it makes for affordable housing payments. Low mortgage rates augment a home buyer’s ability to get mortgage-approvedWith low rates come low payments, which helps to hold down debt-to-income (DTI) ratiosThere are also a bevy of low- and zero-downpayment mortgages available for today’s first-time buyer. FHA mortgages, for example, allow for a 3.5% downpayment in most cases, and the Conventional 97 program allows just three percent.  In addition, USDA mortgages and VA loans offer zero-downpayment mortgages for qualified buyersUSDA loans are insured by the U.S. Department of Agriculture and are available from most U.S. banks. VA loans are guaranteed by the Department of Veterans Affairs and are also available from most U.S. banks. To qualify for a VA loan, you must be on active duty, have been honorably discharged from the service, or be the surviving spouse of a service member.

Build Your REDDING Housing Budget Using “Real” Rates – 

If you plan to buy a home in 2013 or 2014, plan for rising home prices and mortgage rates, too. Demand for homes has thus far outpaced supply in this year, and economic growth is expected to move rates up. This combination will harm your home purchasing power, and limit what you can afford. As you build your housing budget, therefore, plan for the future. Use today’s real mortgage rates, and have the team at Redding MegaStar account for a cushion. As the economy improves, the cost of homeownership will rise.

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