Thermometers around the world aren’t the only ones hitting off-the-chart temperatures this summer; the U.S. housing market is boiling-hot. Stubborn, soaring home prices, and ratcheting-up mortgage rates have rocketed the real estate market. Although homebuyers saw a back-to-back drop in median home sale prices during the last few months, they ticked up again in July.
While home prices remain down when compared with record prices last year, data suggests that the upticks and downticks in housing prices will vary depending on the regions all across the country. Both homeowners and buyers need to learn to go with the flow in the current market.
Continue reading If you want to learn how to cut the risks in a tight housing market.
Explore Different Financing Options
First off, you should explore your financial options to secure the best deal if you are seeking a mortgage. Mortgage rates play an important role, especially when they increase. With the Federal Reserve’s rate hikes, the idea of buying a home becomes less appealing. While mortgage rates are currently at their highest level this year, there are still opportunities to find favorable terms.
For instance, if you plan to stay in your new home long-term, a fixed-rate mortgage could provide stability. On the other hand, if you’re a frequent mover or house flipper, an adjustable-rate mortgage (ARM) might suit your needs. ARMs typically have lower initial interest rates, but keep in mind the potential risk of future rate increases.
Broaden Your Search
In a highly competitive market with limited housing inventory, it’s hard for buyers to make the right choice. The shortage of new listings is coupled with strong demand, despite the high mortgage rates. This phenomenon is explained by the fact that many homeowners benefited from previous low-record interest rates to peg their mortgage rates. However, these shortages and upticks in house prices remain heavily region-specific.
If your desired area lacks available homes, consider exploring other neighborhoods or even different regions where there may be more options. You might be surprised to find attractive and affordable properties in less saturated markets. For instance, the Northeast or Midwest regions are now presenting better opportunities for buyers.
Exercise Patience and Persistence
Finding your dream home in a challenging market requires patience and persistence. With fewer homes listed compared to the high demand, it may take some time to find the perfect match for your needs. Stay vigilant, act swiftly when you spot a potential property, and be prepared to negotiate. Patience doesn’t mean settling for less, but rather staying focused on your goals while navigating the market’s complexities.
Bottom Line
Finding relief from the punishing real estate market this summer may seem like an uphill battle, but it’s not impossible. By exploring different financing options, broadening your search, and embracing patience and persistence, you can increase your chances of success.
If you’re trying to dabble in the housing market or looking to buy your next house, get in touch with High Quality Mortgage. We offer an array of mortgage products to suit your needs. Contact us today!
he inspiration to launch the program is to help consumers buy homes, he said, without mention of rival UWM: “I’m in the business of changing people’s lives,” Fawaz said. “This is a program that can change American lives. It hasn’t been a kind market for any of us, and it’s been tougher to qualify for a mortgage. This is a great program that really puts consumers in a position where they can actually purchase a home today.”
AMI expansion is for brokers, consumers UWM says
MPA also reached out to UWM to gain insights into the modifications to its original Conventional 1% Down program – chiefly raising the required eligibility from 50% to 80% AMI.
“We rolled it out in April,” Alex Elezaj (pictured right), UWM’s chief strategy officer, reminded MPA at the beginning of a telephone interview. “We were the first to roll it out. Obviously, some other lenders followed, but we lead.”
He said the widened eligibility had already made an impact: “That really opens up opportunities for consumers across America,” he said. “People are taking huge advantage of it. It’s been a huge success. The feedback we’ve gotten from brokers is just tremendous.”
The inspiration to up the AMI requirement was not UWM’s competition but a part of company protocol when a product is launched, he said. “What we do a lot at our company is to launch something and then we make it better – not just 1%, but a variety of different products,” Elezai said. “We wanted to start at 50% — with the population of consumers we thought needed it the most – and then we made the decision to widen it out and help even more.”