Buyers want to buy but worry about economy
Buying a home is still very much part of the American Dream but concerns over the economy are preventing some from doing so. The latest quarterly consumer survey by the National Association of Realtors shows that 94 per cent of renters aged 34 or younger, and 88 per cent of all ages, want to buy a home eventually.
However, inability to afford a home was the issue for 54 per cent of those polled with 19 per cent saying renting gave them the flexibility they needed. Life changes, such as marriage or retirement, were the most likely reasons for renters to expect to become owners (33 per cent) while 26 per cent would buy based on an improvement in their finances.
Among all households (renters and homeowners) in the survey, the results highlight a split between those who agree the US economy is on the right track and those who disagree. Only half of respondents believe the economy is currently improving, and 44 per cent think the economy is actually in a recession.
Mortgage lending standards to ease say lenders
Mortgage lenders expect further easing of mortgage credit lending standards. Fannie Mae’s Lender Sentiment Survey conducted in November found that more lenders expect easing credit standards for GSE-eligible and government loans over the next three months while fewer believe they will tighten. More lenders reported easing as opposed to tightening of credit standards over the prior three months across all loan types.
Mortgage rates higher this week
Freddie Mac’s mortgage market survey shows that mortgage rates edged higher this week as the Fed decided to increase interest rates by 25 basis points. The average rate for 30-year ARMs increased to 3.97 per cent from 3.95 per cent; 15-year ARMs increased to 3.22 per cent from 3.19 per cent; 5-year FRMs were unchanged at 3.03 per cent; 1-year FRMs increased to 2.67 per cent from 2.64 per cent last week.
Iowa home sales down, prices up in November
Iowa Association of Realtors reports that home prices in the state increased in November compared to a year earlier while sales volume was lower. The median sale price rose 4.4 per cent year-over-year to $139,900. There were 2,513 homes sold last month, down 10.2 per cent from November 2014. Total sales for the year are 4.9 percent ahead of this time last year.