Over the past weeks there have been reports that state mortgage applications have risen in the middle of May, but recently may have dipped slightly, in terms of new home applications and refinance applications that are being filed. Yet, when it comes to the housing market and first-time home buyers, there are those who feel this is an ideal time to begin looking into purchasing a home, as there are some reports that have stated homeowners are bypassing a traditional, small house or starter-home and opting for a larger property, as housing prices and lower interest rates have played heavily into options available for affordability.
Understandably, not all would-be homeowners should not be rushing out to buy a new home, as homeowners who had purchased more home than they could afford are one of the reasons that the housing market saw such problems during the recession, but there are also analysts who questioned why more homeowners are beginning to rent rather than taking advantage of aspects that are currently in place within the housing market that may make a home loan more affordable.
Housing data has recently shown that interest rates on mortgages continue to decrease, and lower home prices which have been the result of decreased property values are also making certain properties in areas that are seeing these declines quite affordable and, potentially, a great buy for homeowners. However, there are some who feel that first-time homebuyers may not be as plentiful as many would expect simply because there is uncertainty in not only housing but the job market as well.
It’s true that there are homes sitting empty and could come with a very affordable interest rate on the mortgage, but some would-be first-time homebuyers have hesitated because they may be concerned over potential drops that could continue in the housing market, in terms of property value, or others may feel that their job is not as secure as they would want before entering into a long-term mortgage agreement.
Obviously, the fear that many first-time homebuyers share is getting a home that is seemingly affordable, but hitting rough patches in their financial life, like those related to unemployment or cutbacks at their job or in wages, which could create a situation where a once affordable mortgage is now troublesome and could drag down other areas of their finances. While the job market is said to be slowly recovering, some still question whether this is the case as low job numbers from May left many wondering if the employment sector was indeed on the mend. It’s true there are some houses that are affordable and may offer incredible opportunities for first-time homebuyers at the present time, but until the job market begins to look a little brighter there could be continued hesitation on the part of buyers to enter into a mortgage agreement at the present time.