- Housing News
- February 16, 2021
It's Getting a Little Easier to Get a Mortgage
At a time when interest rates have never been lower, it is getting somewhat easier for borrowers to take advantage of those low rates.
Ben is the Managing Editor for New American Funding. In this role, Ben helps with content creation, news coverage, and serving our audience of borrowers, real estate agents, loan originators, and other housing professionals. Prior to joining New American Funding, Ben worked at HousingWire, a top housing media outlet. Ben joined HousingWire in 2014 as a reporter and was later promoted to Senior Financial Reporter, Editor, and eventually to Managing Editor. During his time at HousingWire, Ben helped elevate HousingWire to national acclaim and record traffic growth. He was also honored with multiple awards for his work, including an Eddie Award from Folio Magazine and a Gold Award for Best Trade Magazine Story from the National Association of Real Estate Editors.
At a time when interest rates have never been lower, it is getting somewhat easier for borrowers to take advantage of those low rates.
Thanks to the combination of fewer homeowners listing their homes for sale and more people wanting to buy a new home, there are fewer homes on the market now than there have been at any point since at least 2012. However, relief may be on the horizon.
Given that inventory has never been lower and prices have never been higher, more people are realizing that now is a good time to sell their house.
Even though home prices continue to rise faster than ever before, more people believe they can afford to buy a home, likely due to sustained record lows in interest rates.
Given how much attitudes towards owning a home changed last year, it’s probably not a surprise that homeownership hit a 12-year high in the third quarter of 2020. What may come as a surprise, however, is the fact that homeownership appears to have fallen back in the fourth quarter by a decent amount.
Back in December, the number of homes on the market fell to a new low. Unfortunately, things only got worse in January.
Much to the delight of homeowners and chagrin of homebuyers, home prices just kept rising in November at a record-breaking pace.
Remember that whole 'home sales are slowing down' thing from last month? Yeah, never mind.
Home prices rose dramatically in 2020. This much is known. But what was the impact of those rising prices on people who sold their homes in 2020? It turns out it was a pretty profitable endeavor.
With home prices continuing to rise at a record-breaking pace, there are quite a few housing markets where homebuyers' money is not going as far as it used to. Luckily, there appears to be a solution: moving to a new city where you can get more for your money.
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