Homebuyers are saying this is the “worst time to buy a home”.
This sentiment is echoed in new numbers released by Fannie Mae. Fannie Mae’s Home Purchase Sentiment Index for January shows that housing sentiment drifted lower falling 2.4 points to 71.8 as affordability constraints sharpened.
Younger households are growing particularly pessimistic as the ‘Good Time to Buy’ measure hits an all-time low. These numbers are what we saw back in May of 2020 when we were all facing lockdowns due to COVID-19.
On the contrary, 69% of home owners say that it is a good time to sell their homes. We are seeing driving demand from the lack of inventory on the market. See the contrast here with only 25% of would-be homebuyers saying it is a good time to buy.
The S&P CoreLogic Case-Shiller National Home Price Index report recently published showed that 19 of the 20 cities analyzed home prices were at all-time highs. This is coupled with rising mortgage rates. The average 30-year fixed-rate mortgage is at 3.55% today. The record low was 2.65% on January 7, 2021. We all miss those days.
Sam Khater, Freddie Mac’s chief economist said, “As the economic recovery continues going into the spring and summer, mortgage rates are expected to resume their upward trajectory. In the meantime, recent data suggests that homebuyer demand continues to be elevated as supply remains low, driving higher home prices.”
Homebuyers feel helpless in this market.
How do you get prepared to buy a home in this market with the odds stacked against you?
Understand your money and your potential mortgage. Getting fully pre-approved by us will allow you to know your numbers. You can make the strongest offer possible for your situation and can provide a smooth closing for the seller. This is imperative when many contracts fall through because buyers are not prepared.
Let’s talk today to get your ready.
