Despite the low housing stock and record high home prices, homebuyer enthusiasm remains high. Mortgage lenders have reported an increase in demand for home loans in the past three months, according to the report Fannie Mae released last month.
Meanwhile, demand for mortgage refinancing has dropped significantly since its 2020 boom – even though historically low refinancing rates and skyrocketing home equity growth make now the time to refinance mortgages.
If you are buying a new home or just want to save on your current home loan, you can start the mortgage process on Credible… Shopping at the best rate on a fixed rate mortgage can save you thousands over the life of your mortgage.
The market will soon be flooded with more housing stock, making it easier to buy a home.
Home buyers face many challenges in today’s real estate market due to high demand and low inventory levels. But the demand in the housing market should cool down. in the next few monthsexperts say, although house prices are likely to remain high. In addition, current mortgage rates are consistently below 3%, so it is reasonable to take a mortgage while the rates are low.
Here are some tips for buyers ahead of an influx of housing stock:
- Consider homes below your price range. Many homes are selling well above the asking price, so looking at the very top of your buying price range may not give you wiggle room if you need to make a competitive bid. Use mortgage calculator to estimate your monthly payments.
- Be flexible with the closing date. This is a way to make your offer stand out from the rest without sacrificing the typical contingencies like seeing a home or offering a price far above your asking price.
- Come with a pre-approval letter for your mortgage. Pre-approving a mortgage shows sellers that you are serious and they will most likely not consider an offer if you do not take this step. Take a closer look at mortgages on Credible so you can start the home buying process.
Still a good time to refinance despite falling demand
Mortgage lenders report a decrease in demand for mortgage refinancing, but this is not due to the rise in rates. Today’s refinancing tariffs remain near historic lows, hovering well below 3% for all loan lengths, according to Credible.
Apart from low refinancing rates, homeowners can take advantage of growing home equity. The average homeowner earned over $ 33,000 in home equity in the past year, according to data recent consumer survey from CoreLogic… This could allow cash refinancing for home renovations to be obtained while maintaining record low interest ratewhich will save you money over time.
You can compare rates for several lenders by filling out a single form on Credible. This can make the mortgage process easier so you can meet your financial goals.
Mortgage lenders lower their lending standards
The Fannie Mae report also showed that the net proportion of lenders who have lowered their credit standards has increased since last year, meaning that fair credit buyers or homeowners will find it easier be eligible for a mortgage or refinance a product.
If you thought buying a house or refinancing your mortgage but you are putting it off because of concerns about your credit rating, consider prequalifying your mortgage. This allows you to see your potential conditions such as loan amount and interest rate. Prequalification for a mortgage loan does not affect your credit rating and it is free.
You can find out if you are eligible for a home mortgage or mortgage refinance at Online loans market Credible… While you’re there, estimate your monthly mortgage payments with mortgage calculator assess the affordability of the house.
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