Make Smart Financial Moves | May Market Update
Why Some Homebuyers Aren’t Waiting for Lower Rates
Thinking about buying a home? It’s a tough call this spring as you weigh the possibility of lower mortgage rates against the potential for increased competition driving up prices. The average U.S. home price has surged nearly 44% between 2019 and 2023, making affordability a concern for many. Additionally, signs suggest that mortgage rates will remain at a high level for some time. However, with more properties on the market compared to last year and some sellers offering incentives like mortgage rate buydowns, now might be the time to seize the opportunity and avoid a surge in competition. With changes to real estate agent commission policies coming this summer, it could also mean lower costs for sellers, adding another factor to consider in this dynamic market.1
Don’t Let Your Student Loans Delay Your Homeownership Plans
If individuals are contemplating purchasing a home while still managing student loans, they’re not alone. Many adults have postponed significant decisions like home buying due to student debt. However, there’s encouraging news: waiting may not be necessary. According to the National Association of Realtors, approximately 38% of first-time buyers carried student loans, and certain programs offer mortgage eligibility despite this debt. With a stable income and guidance from a trusted lender like RWM Home Loans, prospective buyers can explore their options to determine if homeownership is feasible. Potential buyers are urged not to allow student loans to disrupt pursuing their dream home – reach out to me if you or someone you knows can benefit from a discussion on planning for homeownership, even with debt.2
Proposed Home Renovations Are Booming Thanks to High Rates
Amidst fluctuating loan rates, homeowners are investing in renovating their spaces at near-record levels, even as fewer consider selling their homes. With a mindset focused on long-term residency, homeowners are prioritizing upgrades like bathroom remodels and landscaping. Despite the peak in renovation spending in 2023, the trend continues well above pre-pandemic levels, reflecting a desire to enhance living spaces for the foreseeable future. As homeowners seek to personalize their spaces, searches for unique features are on the rise, indicating a growing appetite for individualized home improvements. If you or someone you know are looking to refresh your space, I am experienced with renovation loans and can help finance your goal to turn your house into a home.3
Did You Know?
Homeowners have a unique opportunity to tap into the equity built up in their properties through home equity loans. With the average homeowner having approximately $299,000 in home equity, of which $190,000 is accessible, this represents a significant source of funds. Home equity loan rates are relatively low compared to other lending products.4
Is a Multi-Generational Home Right for You?
Ever thought about sharing a home with grandparents, parents, or other loved ones? Many people are opting for multi-generational living arrangements, where everyone can reside together. According to the National Association of Realtors (NAR), buyers choose multi-generational homes for various reasons. About 27% want to care for aging parents more easily, while 19% aim to spend more time with them. Additionally, 22% of buyers seek to cut costs, and 11% need a larger house multiple incomes can afford. Sharing expenses like mortgage and utilities makes homeownership more achievable, particularly for first-time buyers facing market challenges. Since finding the right multi-generational home involves considering multiple opinions and needs, consider exploring options with me so I can ensure a seamless buying process.5
Should You Consolidate Debt Into a Mortgage?
Dealing with debt can be overwhelming for individuals, but there are solutions available to help ease their financial stress and work towards their goals. For those wanting to pay down their debt as soon as possible, exploring a debt consolidation mortgage could be a smart move. This strategy enables individuals to merge multiple debts into one, making it easier to manage payments and potentially saving money on interest. With household debt in the United States reaching $17.5 trillion, many individuals are opting for debt consolidation to regain control of their finances. By leveraging home equity, homeowners can pay off high-interest debts and streamline their financial obligations. With the right guidance and tools outlined in our blog, individuals can secure a brighter financial future.6
Sources: 1 usnews.com; 2 keepingcurrentmatters.com; 3 bloomberg.com; 4 cbsnews.com; 5 keepingcurrentmatters.com; 6 rwmloans.com
