Summer is traditionally one of the most popular times to buy a new home. The kids are out of school, the inventory tends to be more abundant, and sellers are usually more motivated to sell. Although summer is well under way, there is still time to purchase the home of your dreams while taking advantage of the season’s housing trends. If you are looking to get in to a new home before the fall this year, our Wilmington NC builders explains five housing trends you should be paying attention to this summer.
Lenders are Starting to Loosen Their Purse Strings
After the housing crisis hit, it was next to impossible for the average consumer to get a mortgage. But, new reports are suggesting that lenders are finally starting to loosen their credit restrictions so more people can find it easier to qualify. While lending is still not as fluid as it was during the housing boom, underwriters are starting to take more of a “common sense” approach to application approvals, meaning that borrowers with slightly lower credit can get the loans they need to buy.
Mortgage Interest Rates Remain Low
Most real estate experts predicted rising mortgage interest rates this year, but so far this summer, rates have remained surprisingly low. Even more importantly, new estimates suggest that the rates are likely to stay low throughout the remainder of summer. That said, rates can change at any time, so if you have a house in mind that you want to buy, don’t hesitate too long or you could get stuck with a higher rate.
Non-QM Mortgages are a Growing Option
Earlier this year, the majority of lenders stated that they would not lend outside of the guidelines provided by the Consumer Financial Protection Bureau’s qualified-mortgage (QM) rule. These regulations, once implemented, actually made it somewhat more difficult for borrowers to get approved for home mortgages. But, this summer lenders started creating and offering loans that don’t meet QM requirements, thus making it a little easier for borrowers, especially those who are self-employed or looking for larger loans, to get approved.
Home Prices Remain Low
Along with interest rates remaining low, home prices have also remained surprisingly low this summer as a result of a less-than-stellar spring buying season. But, this isn’t expected to last all that much monger. Home prices are higher this year compared to last year, but prices are growing at a much slower pace. As more homes become available on the market and demand grows, prices will start to rise.
FHA Loan Discounts
FHA loans have traditionally required low down payments, but the mortgage insurance they demanded often offset those savings. In an effort to ease the burden on homebuyers, the government introduced a program called H.A.W.K., which reduces the upfront costs from 1.75% of the loan amount to 1.25%. But, this discount is only available if the home buyer agrees to undergo counseling. In addition to the reduced upfront fees, home buyers who get counseling will also see their mortgage insurance premiums dropped from 1.35% to 1.25%, and this can result in considerable savings over the life of the loan.
Wilmington NC Builders Says Now is the Time to Get the Home You Want
As one of the leading Wilmington NC builders, Trusst Builder Group has our finger on the pulse of the real estate market. Thanks to a weak spring selling season and the above five summer housing trends, home buyers who want to get in a new home before the fall may be able to get the home they’ve always wanted for less than they ever thought imaginable. Now is the time to buy! Visit Trusst Builder Group today or schedule a consultation with one of our builders and let us help you get the home that fits your family’s needs, wants, and budget. Just give us a call today at 910-371-0304 to see what we have to offer.