Crownsville, MD – Secretary Skinner’s announcement that Maryland Mortgage Program interest rates on Tuesday hit a record low of 3.25 percent comes as the state’s improving housing market is helping make homeownership increasingly accessible.
The Housing Affordability Index measures the percentage of a typical family’s income that must be spent on housing each month. It takes into account home prices, mortgage rate and household income.
Recent data from the Maryland Association of Realtors indicates that housing affordability in the state has significantly improved since the housing peak of 2007 for both repeat and first time homebuyers, said DHCD Research Director Massoud Ahmadi. Mortgage rates hover around historic lows, home prices are at 79 percent of the Maryland peak bubble price and median household income is gowing. As a result, housing affordability reached its highest August mark since 2000.
Low rates, low prices and significant downpayment and settlement cost assistance makes today a good time to buy, Secretary Skinner said.
Meanwhile, Maryland home sales grew annually for a fourth consecutive month in August, recording the state’s best August since 2007.
The Maryland Mortgage Program offers a variety of low-interest, fixed-rate mortgage loan options with down payment and closing cost assistance for first-time homebuyers. Qualified veterans or purchasers in a targeted area are eligible for a one-time exemption to the first-time homebuyer requirement.
Visit DHCD’s website at Mdhousing.org to learn more about the Maryland Mortgage Program, including special incentives for first-time homebuyers, veterans and military families and families looking to move into their dream home in targeted neighborhoods throughout the state.