Those who are planning on buying a home in July or who may simply be in the process of looking for a home could find that the housing market can offer numerous options in the area of affordability, but there have been reports released over the past weeks, specifically at the end of June, that show some potential new homebuyers may not be ready to take a leap into the housing market just yet. At the end of June there were reports that mortgage applications were declining somewhat, but pending home sales in April and May had a more positive report.
However, the housing market is not only offering homebuyers the chance to get an affordable rate, but there are short sale and foreclosed properties that are sitting on the market that may offer low-cost buying opportunities for some. This topic is one that has been covered over the last few months as rates on home loans stay quite low, with a 30-year mortgage bringing a rate of around 4.5%, but the issue that keeps arising is that there seems to be fewer homeowners taking advantage of these options.
There are mixed predictions of what may come in July and August, but one thing that the housing market needs is buyers to clear backlogs of homes that are sitting empty. Yet, apartment prices are reportedly on the rise due to the fact that more consumers are opting to rent rather than purchase a new home, and this could be for various reasons depending on the individual. Low rates and home prices that may be the result of a foreclosure, short sale, or simple devaluation could all potentially bring about a good buying experience for new homebuyers, but it’s obvious that many homeowners may not be considering a home loan for many reasons.
Unemployment is probably the main factor behind low numbers in the housing market, in terms of mixed results over the past weeks and months for new home loan applications, but there are still concerns over whether housing is going to continue to improve or if various economic factors could cause a double-dip in some areas. Also, there are potential homebuyers who, after having lost their home to foreclosure or a short sale, may simply not qualify for a home loan at the present time.
Yet, advisers want homebuyers to be cautious if they are planning on buying a home here in July, or at any point in the near future, as certain factors like increased costs that may be required or the potential for further housing price drops in some areas will require that buyers do their homework. No one will know for sure what home prices will do in a certain area, and continued uncertainty in the area of employment may cause some potential buyers to delay purchasing a home, but with proper planning and reviewing one’s financial situation, there are buyers who are finding options for affordable homes and rates at the present time.