Wellesley Economics Professor, Dr. Karl “Chip” Case, once offered the hypothesis that real estate values in the United States are less affected by basic economics, than they are by the psychology of homebuyers and speculative investors in real estate. Their belief in the future movement of property values motivates them to buy now before the value or cost goes up. Market behavior becomes a self-fulfilling prophecy based on the psychology of market participants. The premise is true in both appreciating and declining markets.
Opportunity Knocks is a MassHousing/Massachusetts Association of Realtors event that attempts to help homebuyers recognize the opportunity that exists in the current market. The combination of affordable properties and safe mortgages with low interest rates will make long-term affordability sustainable over the extended term of homeownership.
Lenders once criticized MassHousing for having programs that failed to reach the majority of homebuyers because sales prices of even affordable properties were beyond our sales price and loan limits. During the weekend of Saturday, May 30 and Sunday, June 1, Massachusetts Realtors will conduct open houses, statewide, on over 1,000 homes priced within MassHousing’s sales price and loan limits. With income limits for several of MassHousing’s programs set at 135% of the HUD median household income, an estimated 65% of homebuyers will qualify for a MassHousing loan.
MassHousing offers financing options not only for first-time homebuyers, but also for move-up buyers and homeowners looking to refinance into a safe and predictable, fixed rate mortgage.
MassHousing has also worked to make mortgage insurance a consumer benefit rather than something to be avoided. MI Plus provided by MassHousing not only provides lenders with the traditional coverage of private mortgage insurance but also provides homeowners with mortgage payment protection that will help borrowers with their mortgage payments for up to six months in the event they become unemployed anytime during the first 10 years of the mortgage. With a fixed-rate mortgage from MassHousing, buying a home has never been more affordable or more safe.
Anyone serious about buying a home in the near future should take the time to visit one of the six home fairs being conducted as part of this three-day event. MassHousing staff, MassHousing-approved lenders, nonprofit homebuyer counseling agencies, and members of the Massachusetts Association of Realtors will be available to answer questions about purchasing and financing a new home; buyers can also secure information on the more than 1,000 open houses being held during the weekend. On Friday, a home fair will be held from 10 a.m. to 3 p.m. on City Hall Plaza in Boston. On Saturday, events will be held in Hyannis at the Cape Codder Resort and Conference Center, in Lawrence at the Senior Citizen Center, in Worcester at the DCU Center, in Holyoke at the Holiday Inn, and in Brockton at the Conference Center at Massasoit. You can learn more at masshomefair.com.
If you are qualified for a safe, affordable, fixed-rate mortgage on a home within your income range, there may never be a better time to buy a home in Massachusetts than right now.
Excuse me. I think I hear opportunity knocking.