Home Buying: Does it Get Easier During the Last Half of 2017?

A couple planning to buy a house Buying a house is one of the biggest financial decisions anyone is going to make. With the ever-changing property market and the financial difficulties of the younger generation, however, the rite of passage of owning a home is becoming a challenge for most.

Back in January, Forbes reported that the rising home rates might complicate the housing outlook for 2017, as it can affect supply and demand in the market. The article states that while higher rates will negatively impact the demand for housing, the supply-side dynamics of the country’s housing sector remain to lean over to a higher home process.

Homes Remain Affordable Despite Mortgage Rate Rise

During the first quarter of 2017, 6 in 10 American homes were affordable to households that fall under the national median income. The typical homeowner uses a 30-year conventional mortgage, gave a modest down payment, and possesses good credit scores. The index indicates that homes are, in general, as affordable today as they were in the past three-quarters, despite the sharp rise in mortgage rates. The information came from over 220 metropolitan areas in America. Conducted by the National Association of Home Builders (NAHB), their quarterly report that tracks home affordability to American households.

There are also lenders who make applying for a mortgage easier. City Creek Mortgage, for example, uses an easy four-phase loan to streamline applications for their clients.

How Does the Latter Half of 2017 Look Like?

The data from NAHB shows that the prices of homes have continued to rise every year since 2012. On paper, it’s great news for homeowners, but not so much for buyers. While there’s a possibility that home prices will skyrocket in 2017, there is also a good chance that they will fall. Rising rates might put a stop on the rising house prices. On the other hand, the rising payments could result in fewer bidding wars and even offers that are over-the-market prices.

The rising mortgage rates may not seem good for house buyers, but there’s a chance that it will make homes more affordable during the remainder of the year.

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Posted on by Nihonmagazine in Money Talks

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