A recent survey of American homeowners and renters released by Harris Poll on behalf of ValueInsured found that while Americans embrace the dream of homeownership, the possibility of losing a hard-earned down payment is discouraging them from buying. More than half (55 percent) of renters are confident they will get their down payment back if they were to buy today and have to sell in the next 2-7 years.
Our historic-low interest rates just inched up a bit, creating big headlines.
Specifically, the Fed just raised its benchmark interest rate by .25 percent for the first time since 2006. This morning, prospective homebuyers find themselves ruminating over a lot of what-ifs.
Not to worry. The rate hike isn’t that big a deal.
As I get older, I am learning to respect a lot of those old adages I used to hear growing up. One in particular struck me this morning - "the more things change, the more they stay the same." Look at 1965 as an example. 50 years ago we were mired in a complicated war, racial tensions were brewing and the Rolling Stones were on tour. Sounds like 2015 doesn’t it? But the similarity doesn’t end there. Homeownership levels are also the same - and not in a good way.
In the CNN Money report "4 reasons 2016 is the year to buy a home" we learned that all cash purchase transactions declined significantly in the Q3 as reported by CNN commentator Kathryn Vasel. The simple response to this data point is more affordable homes are becoming available to first time buyers.
A different point of view, however, is ...
Down payment protection can provide the confidence needed to buy and sell a home
According to a newly released survey of American homeowners and home renters, conducted online in October 2015 by Harris Poll on behalf of ValueInsured, although Americans embrace the dream of homeownership, the possibility of losing a hard-earned down payment seems to be discouraging them from taking the plunge. Only 55 percent of renters are confident they will get their down payment back if they were to buy today and have to sell in the next 2-7 years (the average employee tenure in the U.S. is 4.6 years overall, 3 years for millennials).
If Americans could trust their down payment to be protected, it would be a different story
Four reasons why 2016 is a good time to buy a home
"All key economic indicators are ripe"
With 2016 fast approaching, now is the time for renters to get off the sidelines, start organizing their finances and take on the excitement of homeownership.
But given the recent history of the housing market and Americans’ increasing need to stay mobile, it is understandable that it can be nerve-wracking to invest your hard-earned money in a home.
However, unlike years past, all key economic indicators are ripe and there are two major changes to the mortgage process that help make 2016 a good year to buy a home.
