Homebuyers are optimistic these days. Here are 3 possible reasons why:
1. Lending is Getting Easier
Over the past several years, mortgage rates have been at historical lows. This has meant that homes are actually more affordable, in spite of the increase in prices. However, lending has been very tight. Fortunately, that’s changing. Loans are being approved more frequently.
2. Employment is Improving
According to a Fannie Mae survey, fewer homebuyers are worried about losing their jobs. Plus, overall income is higher, making homes more affordable by comparison. In fact, the median household currently has 150% of the income needed to buy an average home.
3. Renters are Buying
Millennials have been renting for a long time, putting them higher up on the pay scale, compared to previous generations of first-time homebuyers. Millennials are also hitting an age when they are willing to buy a home instead of renting.
All of the above reasons should give you confidence that now is definitely a good time to buy. As you’re looking, wouldn’t it also be nice to save money with a down payment as low as 1%?
Get preapproved and take advantage of the savings, and you’ll be in a new home real soon.
