The United States Federal Reserve decided to raise interest rates as a measure to control inflation.
According to a study conducted by the Urban Institute in 2021, Latino homebuyers are forecast to account for up to 70% of the growth in home purchases between 2020 and 2040 in the United States. The study explains that, in 1990, of households headed by people under 65 years of age, only 7.3% belonged to Latinos. And 30 years later, in 2020, that percentage rose to 16.4%.
The study shows that Latinos are the only racial or ethnic group that will increase their homeownership rate. Even over the last decade, just over half of the growth in home ownership in the country was thanks to the Latino population.
There are organizations and companies that understand the challenges associated with being an immigrant in the US, and at the same time are aware of its potential, which is why they offer options to obtain credits to acquire housing.
It must be taken into account that the loan options are more limited if you only have an ITIN. In some cases, the application process will depend on the lender and the type of credit chosen, and generally, non-residents must have documents that prove that they legally live in the United States.
Additionally, despite the trends in favor of the Latino/Hispanic community in purchasing a home in the United States, there are several barriers that they must face, such as high down payments, low credit score, eamong other. Without a doubt, buying a home in the United States is not an easy task, and after the Federal Reserve's decision to increase interest rates, it can become even more complicated.
Interest rates for 15-year and 30-year mortgages had remained below 2.5% throughout 2021, however, as of the end of March of this year, 15-year mortgages almost reached 3.8% and 30-year mortgages reached up to 4.7%.
However, interest rates are not fixed for all geographic areas, as they vary depending on location, economic characteristics, state laws and real estate market conditions.
Here is a list of cities where buyers can get the lowest interest rates, according to an analysis by the specialized site Construction Coverage:
In large cities and metropolises, some of the options are in the Washington D.C. metropolitan area, which also includes Arlington and Alexandria, and other cities in the states of West Virginia, Virginia and Maryland. In this area the average of all mortgage interest rates is 3.13%. In the Sacramento area of northern California they drive the same percentage on average.
Finally, the three metropolitan areas with the best mortgage interest rates to purchase a home are San José-Santa Clara, California, the average interest rate is 3%, the same as in the San Francisco-Oakland and Boston-Cambridge areas. -Newton, in Massachusetts and New Hampshire.
