Homebuying Pointers in an Unpredictable Market
If you’re in the market to buy a home this Summer you’ll need to be careful navigating this uncertain time. In this high demand homebuying market, here are a few thing you may want to consider. Know your market: On average, home prices jump 9% from January to June according to a new analysis from NerdWallet. Generally the inventory in this period is higher as well, but with the hot housing market this years inventory may be lower. Get preapproved: Your credit score, debt-to-income ratio, and down payment will all factor into whether you get a home loan with favorable rates. Putting in an offer on a home with a lender’s preapproval may set you apart from other offers. Prepare to be flexible: Between the increased mandates both state and nation wide and the need to keep all parties healthy during this unique time, being flexible in how you see the homes you’re looking at is important. Determine where you’re willing to compromise: Supply for the housing market was tight to start 2020 and so far this year demand has outweighed additional supply. Going into this process knowing what you’re willing to compromise on will ensure you don’t miss a chance to submit an offer. Consider waiting: Postponing your home purchase can be disappointing but depending on where you’re shopping, waiting could get you a lower price with less competition and increased financial security. Increasing your confidence in your decision by thinking everything through will make you feel more comfortable in any purchase you...Mortgage Market Climbing Again
For the ninth straight week the number of mortgage loan applications has climbed. In the last calendar week, the number of applications for home mortgage loans has risen 4.1% according to the Mortgage Bankers Association. Part of the rise in home mortgage loan numbers is the rise in the refinance rate (5%) over last week’s numbers. This 5% gain also represents a 112% increase in the refinance levels year-over-year. The share of home mortgage loan applications dedicated to refinances also saw a slight gain from 64.2% to 64.8% of total application volume. Some more detailed information regarding this week’s application data is as follows: FHA’s share of mortgage applications fell this week to 10.8% from 11.1% VA’s share of applications fell to 10.8% from 11% There appears to still be high buyer demand in the market moving into the end of the...Freddie Mac Celebrates 50 Years of Mortgage Lending
Freddie Mac is celebrating its 50-year anniversary this week. Since it’s inception in 1970 Freddie Mac has utilized $10 trillion for loan funding over the past 50 years. Of this $10 trillion, $9.8 trillion has been used for single-family home mortgage loan funding while the remaining has been used for multifamily rental units. The founding documents of Freddie Mac called for it to provide liquidity, stability, and affordability to the U.S. housing market no matter the economic climate. Despite the current economic conditions, Freddie Mac continues to live up to these standards they set forth 50 years ago. In addition to celebrating their 50-year anniversary, Freddie Mac released an interactive map that breaks down its funding state by state. To see this map click...Mortgage Applications Increase 5%
The Mortgage Bankers Association released a report this week detailing a 5.1% increase in mortgage applications from last week. According to the same report, the refinance index also increased 12% from the previous week, marking the highest level of refinance activity in over a month. This increase also marks a 107% gain year-over-year in refinance volume. Low mortgage interest rates are a driving factor in the high volume of purchase/refinance applications in the mortgage market. Specifically regarding the purchase loan application statistics the following sticks out: FHA’s share of applications increased to 11.1% from 10.9% VA’s share of applications increased to 11% from 10.4% As a whole, the loan application numbers are continuing to trend upwards....60% of Americans Agree Now is a Good Time to Buy a Home
Fannie Mae’s Home Purchase Sentiment Index tracks consumer’s housing-related attitudes, intentions, and perceptions. Although this metric is down 15 points year-over-year, June’s gain marked the second rise in the HPSI in a row. According to this report, over 61% of Americans believe it’s a good time to buy a home, increasing by 9% since May’s polling. The share of people currently renting who believe it’s a good time to buy a home has reached a five year high, signaling favorable conditions for first-time home buyers. Low mortgage interest rates and high consumer confidence make now a great time to consider buying a...Connect With Us
