- Even a small increase in interest rates drastically impacts your budget.
- Securing a mortgage now while rates are still low means you can get more house for your money.
- Spend your money on your dream home, not on interest.
More potential home buyers are poised to enter the market this year, according a national survey by Chase, “Insights: From the Mind of the Homebuyer.” Three in 10 potential buyers say they plan to purchase a home in the next 18 months, with 32 percent of respondents citing low interest rates and 20 percent attributing rising rental costs as reasons for getting off the sidelines.
The survey also found that 62 percent of interested buyers believe that now is a better time to purchase a home compared to last year. And 20 percent of buyers surveyed say they want to upgrade from their current home.
But the survey did find concerns about affordability and competition. Nearly 70 percent of prospective home buyers say they worry that they missed the chance to buy at the best time because of rising home prices. Fifty-six percent say they are concerned about finding a home that fits within their budget and that’s located in a quality neighborhood. Bidding wars are also a concern, with three out of four buyers worrying they will be outbid by others.
“Buyers are clearly concerned about housing inventory and rising prices, especially during the competitive spring buying season,” says Cecelia Barbieri, senior vice president of marketing for Chase Mortgage Banking. “But the research shows that interested buyers are optimistic and ready to act on their goals. In fact, 73 percent said they’d give up things like eating out and taking vacations in order to buy their dream home.”
Quick stats from the survey:
The information in this infographic comes from a video of NAR Chief Economist Lawrence Yun talking about his 2015 housing market expectations. He expects existing-home sales to rise about 7 percent in 2015 behind a strengthening economy, solid job gains and a healthy increase in home prices.
Watch the video of Lawrence Yun’s forecast.
Read the news release about Lawrence Yun’s forecast.
Homer Simpson seems to be one of the more well-off characters that we’ve listed below. With affordable living being at 30% of one’s monthly income – Homer dominates with only spending about 15% of income on living. Other TV stars aren’t so lucky. Full house is devastated when taken into account San Francisco’s housing boom. With modern day prices even Don Draper of Mad Men would be spending too much on living, although I’d say it’s worth it to live in his homes.
Our TV stars seem to have good jobs and no one is living on the minimum wage. Well, there’s always It’s Always Sunny In Philadelphia. Who knows how that crew pays rent. [via]
As home prices rise, homeowners are wasting no time making use of their newfound, or regained, home equity. In fact, while all mortgage originations rose in the third quarter of this year, the biggest gain was in home equity lines of credit (HELOCs).
Originations of these loans, which are often in addition to primary mortgages, jumped over 17 percent for the quarter, according to Inside Mortgage Finance, a mortgage industry publication: $20 billion in new HELOCs, which is the most quarterly volume for the product this year.