Here’s a look at the latest developments in the mortgage market for the week beginning 5/31/21.
- With more listings on the way, buyers should prepare to move quickly
- Over 2M homeowners could now lower their mortgage payments
- More than half of homes are selling above their asking price
- What you should know before buying a home
With more listings on the way, buyers should prepare to move quickly
After over a year of historically low inventory and growing demand, buyers can expect to see a fresh batch of new listings this month. A survey found that 77% of homeowners say they’re expecting to list their home in 2021, and of them, 45% plan to by the end of June.
Homeowners cite rising vaccination rates as a reason for their decision. After the pandemic pushed back their plans to sell in 2020, more owners are getting comfortable with the idea today.
The incoming inventory may provide some new selection, but buyers shouldn’t count on competition dying down. With inventory falling short of demand for months, homes are now selling 34 days faster than last year.
Since this new crop of listings probably won’t stay on the market long, it can help to move quickly with an online lender. Instead of scheduling appointments and traveling to a brick-and-mortar office, buyers can move through the stages of financing in a matter of clicks. Working with Better Mortgage also means you could close your loan 10 days faster than with a traditional lender—a huge advantage when half of homes are under contract in less than two weeks. Find out how buying online can help you get ahead in today’s market.
Over 2M homeowners could now lower their mortgage payments
After a temporary jump, the 30-year fixed rate average dropped to 2.95% last week. With it came the news that over 2 million homeowners are eligible to refinance with a new Fannie Mae program called RefiNow.
This loan option helps homeowners who may not meet income requirements for traditional refinances to lower their rate by at least half a percent and save up to $3,000 a year in mortgage payments. To put those gains into perspective, homeowners who refinanced last year saved over $2,800 annually.
More than half of homes are selling above their asking price
Competition between buyers has grown higher than ever, and bidding wars have gone from frequent to typical. In May, a record 51% of homes listed through online platform Redfin sold for more than their asking price, up from a quarter of homes a year ago.
The trend shows no signs of slowing down with home sales expected to bring in $2.5 trillion by the end of the year—their highest total since 2013.
At this point, buyers can expect bidding wars. Make sure your offer is competitive by getting pre-approved, and negotiating wherever possible. Read up on how you can sharpen your offer for a higher chance of a winning bid.
What you should know before buying a home
Shopping for a home is exciting, and comes with a lot of decisions to navigate. Set yourself up for a smooth home search by reading up on the key first steps, like formalizing your budget, getting pre-approved, and understanding which homes best fit your financial picture. To help guide your path from renter to owner, we’ve put together a checklist of everything a first-time homebuyer should know.
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