Mid-Priced Houses Offer Best Buyer Deals
NEW YORK (TheStreet) -- In a week the Federal Reserve reiterated its goals for the economy -- "maximum employment and 2% inflation," homebuyers are picking over a thin inventory of homes, with a sharp eye on value.
The Fed says it will keep interest rates low for the foreseeable future, and that should help homebuyers, who need low interest rates to keep prices as low as possible for their springtime house hunt. (The 30-year fixed home mortgage rate is 4.31%, according to the BankingMyWay Mortgage Rate Tracker.)
As far as home affordability goes, midpriced homes are the best value plays for buyers, according to Clear Capital, a Truckee, Calif., real estate analysis firm.
Clear Capital's Home Data Index shows the best home-buying value doesn't lie anymore in low-tier homes (priced at less than $95,000), but instead are in midtier homes (in the $95,000 to $300,000 range).
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