Millions of renters said that they wanted to buy their first home within the next twelve months. However many will face multiple discouraging obstacles.
In a nationwide poll by Zillow, 10 percent of current renters said that they think they would be able to afford purchasing their home by this time next year. If that were to happen, it would result in approximately 4.2 million first time home sales.
The home buyers dream is still very much alive, but their aspirations must also face the cruelness of reality. Availability or number of houses on the market is not the issue. However locally, there may be a shortage.
In certain markets like New York or Seattle, a small supply has resulted in skyrocketed sales. The improvement of the market depends on both home availability and affordable prices.
The average mortgage is also moving higher and higher, with the average rate for a 30 year loan being 4.3 percent. That is an increase of about .8 percent from last year. In other words, if you purchased your home for $200,000 last year, your mortgage is about $90 less than if you would have purchased it this year.
However, being able to afford your home may not be your biggest obstacle. Now, lenders are requiring more requirements to qualify for your loan. For example, a hard to come by 20 percent down payment, strong credit scores, and long established income. If youre looking to buy and have little cash to put down, not so perfect credit, you may still qualify for a federally backed mortgage. These have also been seeing changes in higher fees and changing terms.
Out of all the markets polled, Miami, Atlanta, and Las Vegas citizens expressed the most interest in becoming first time home owners. Meanwhile, Los Angeles, San Francisco, and Minneapolis were the least inspired to purchase.
