While many people worry that the Federal Reserve will start raising interest rates this year, it may not happen and that means first time home buyers and those who have owned a home before should try to take advantage of these low rates.

While the economy is slowly improving, there hasn’t been a rapid recovery from the recession that began in 2008. According to Charles Biderman of Seeking Alpha, over the last 13 months, 3.4 million jobs have been created, as compared to 2.6 million over the previous 13 months. In addition, inflation is low. While this is certainly encouraging economic news, it’s not enough to cause the Fed to raise interest rates. Some other points to consider:

  • More first-time buyers

This influx of new jobs is going to drive millennials (people who reached adulthood around 2000) to start looking for their first houses in 2015, according to Realtor.com. The website feels that millennials will account for a whopping 65 percent of first-time home buyers this year. As a result, the demand will push home prices up over the course of the year.

  • Lower-end home prices will increase

Those two factors, more first-time home buyers and rising housing prices, are going to push up the prices of lower-end housing more dramatically in 2015. Sam Khater of Corelogic.com notes that lower-end home prices are increasing more rapidly than higher-end home prices in the largest 25 markets in the U.S. During the fall of 2014, Sam Khater also noted that low-end home prices were increasing at about 1.5 times the rate of more expensive homes.

  • Now’s the time to buy

Low interest rates and steadily increasing home prices indicate that now is the time to buy, especially if you’re a first time home buyer looking for a starter home. Realtor.com’s chief economist Jonathan Smoke notes that younger home buyers will be focused on areas with more affordable housing, like the Midwest and the South.

If you’re a first time home buyer or a seasoned homeowner looking to purchase a home in Florida, we encourage you to call Embrace Home Loans at 800-333-3004 ext. 3560 or browse our website for more information. Our experienced mortgage professionals can help guide you through the process of qualifying for a mortgage and that results in you finding that home you’ve dreamed of.

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