When it comes to every family’s necessities, having the ideal house based on one’s preferences is always at the top of the list. Without a conducive place to live in, people’s productivity and growth are being limited—as individuals and as a family. Another term for housing that perfectly sums up its meaning is the word “shelter.” Owning a place where people can have the safety, security, privacy, and comfort that they need at the end of each day, sheltered away from the threats of the outside world, is an experience that many families dream of.
The importance of living in the best place possible is proven by how the monthly mortgage payment takes a huge percentage of one’s income. Real estate, whether as residential property or as a source of income, is a worthwhile long-term investment to begin as soon as possible. This is because people are always on the lookout for the best mortgage offers available in the housing market as prices are expected to keep on rising moving forward.
Factors that Affect Mortgage Offers
The mortgage offers in the housing market are influenced by various factors, such as the demand and supply of housing, the economic situation, property prices, the condition of the rental sector, and any intervention by the government in the real estate industry.
Demand and supply in housing
The Condition of the Rental Sector
Demand and supply in housing
The law of supply and demand affects the real estate business just like it does every other business. It is a basic economic principle that affects the prices of most goods, services, and, in this case, real estate properties.
The supply and demand in the housing market dictate the stability of property prices. For example, the combination of low supply in the inventory and high demand in the housing market will most likely cause the prices to go up because of the competition among the buyers. This phenomenon is called the “seller’s market.” On the other hand, if it is a buyer’s market, it means that the supply is higher than the demand, which will cause the prices to go down to entice the buyers.
During the height of the COVID-19 pandemic, the economy struggled big time. Both the supply and demand of real estate properties suffered as most people were hesitant to pursue any pricey transactions due to the volatile economic situation. Although, as months passed, there were unique consumer trends that arose in the housing market that opened up new opportunities in the real estate industry.
In most situations, there is usually an overproduction of assets when the economy is bad. As previously mentioned, this helps in keeping the prices down. This scenario benefits the potential homebuyers, who will probably receive better offers from a mortgage broker or mortgage lender.
Another hot topic related to the economic situation is inflation. Inflation does not only affect the prices of the basic goods people consume but also the general real estate market. Some of the effects of a high inflation rate include an increase in property prices, higher mortgage rates, devalued long-term debt, and more expensive construction materials, among many others.
The Condition of the Rental Sector
The demand in the housing market is also affected by the rental sector. It is simple: when more people opt for home ownership and commit to a mortgage loan with monthly payments just like a rental property, there will be lesser demand for houses for rent.
In the Philippines, the concept of “rent to own” is well known. There are many real estate developers that offer affordable housing that can be availed with mortgage loans at low-interest rates. One of the popular options is through the PAG-IBIG Fund, a government-owned and controlled corporation that administers a national savings program that can be used for home financing purposes.
The government can play a huge role in the housing market. For example, areas, where the government’s infrastructure projects are being built will surely receive a higher demand as it will lead to convenience, especially when traveling to and from the metro.
In some countries, the government provides subsidies to finance the construction and improvements of residential spaces to help its citizens have a better living experience. There are also massive housing programs to help the low-income informal settlers live in a decent residential structures.
The best mid-year mortgage offers
According to recent reports, monthly mortgage payments are rising. For interested homebuyers, the usual rate for a 30-year fixed rate mortgage is now around 5.65%, which is a significant increase from the rate at the beginning of this year. It is also important to factor in other necessary expenses such as property taxes, private mortgage insurance, and home insurance, as well as homeowner association fees and other miscellaneous fees for the processing.
Why is a fixed rate mortgage important? Simply put, the higher the interest rate is, the higher the monthly payment will be. However, experts want people to take note that the current rate can still be considered a good one. It should not intimidate homebuyers because, historically speaking, it is still in the normal range. There is also no assurance that it will go down anytime soon. Since the current trend is upward, it will not be a surprise if it will continue in this direction in the foreseeable future.
Real estate professionals are recommending homebuyers find a property they like and check the rates, including the Annual Percentage Rate (APR) and interest rate. Nowadays, the offers are on an extremely adjustable rate mortgage, and the quote that a homebuyer will receive at a given moment may change the next day. When homebuyers are sure about the place, and they like the rates offered, it is good to lock in the deal, or the odds may not be as favorable after a short while.
Get the Best Offer with Brittany’s Luxury Houses
In the real estate world, there is fierce competition and fast-changing dynamics. To rise above the competition, excellent customer service is a must. Consumer expectations must be met to ensure that clients will have the best experience possible. Want to own a property mortgage rate that will be worthy?
Brittany Corporation is one of the leading luxury real estate developers in the Philippines. When it comes to luxury houses, Brittany offers world-class developments that are inspired by famous international travel destinations. On top of these, Brittany has proven its credibility, trustworthiness, and professionalism in the field through the numerous international recognitions it received from several award-giving bodies—not just in the Philippines but among many countries in the region as well.