In recent years, buying a house in the United States has become the choice of more and more Chinese people, either for investment or for self-occupation. It is worth mentioning that at this stage, with the gradual recovery of the US economy, US housing prices are also gradually rising. In addition, people’s concept of buying a house, banks’ credit standards, and interest rates are also changing, so is this still a good time to buy a house in the United States? The following will give you an analysis of several new trends in the US real estate market this quarter, hoping to provide valuable information to the majority of US home buyers.
Current mortgage standards, such as credit score requirements, have begun to loosen, and mortgage rates remain low. In many parts of the country, many sellers are realizing that today’s homebuyers are more cautious and conservative and won’t overpay. The real estate information The network pointed out that those who are planning to buy a home should act quickly, and the housing market is expected to continue to heat up in the coming months.
(1) Relaxation of credit standards
In recent years, it has been impossible to get a mortgage unless you have a solid credit score. Recently, however, lenders appear to be loosening credit standards. According to the Ellie Association survey, the average credit score for homebuyers in August this year was 727, which is still a high score, but down from 750 a few years ago. The average credit score in August 2013 was 734. As for FHA loans, the average credit score was 682 in August this year and 697 in April 2014.
Ellie Society president Jonathan Corr said: “From 2013 to the first half of 2014, this number has continued to decline. At this time, it will not return to 2006 levels, but will return to a normal The market.” Lenders have lowered their conditions for refinancing applicants to attract more borrowers.
(2) Homebuyers move to cheaper housing markets
At present, many home buyers, especially the younger generation, are willing to switch to the affordable real estate market. The real estate firm recently compiled a list of the nation’s most affordable housing markets, listing average home prices and percentages of mortgage payments. In Fayetteville, North Carolina, for example, the typical home buyer spends about 13 percent of their household income on their mortgage. The local millennial population has grown by more than 20 percent since 2007. Blomquist said:
“It’s probably not the city you’d imagine young people will move to, however, job opportunities in these places are constantly improving.”
(3) Changes in young people’s concept of buying a house
Mortgage services director Pava Leyrer pointed out that millennial homebuyers have been spending cautiously, sticking to their budgets. Furthermore, the younger generation sees a home as a place to live, not an investment as their parents thought. “Many young people have observed the market that their parents experienced in the ups and downs of property prices, where residential prices have not continued to appreciate and have fallen significantly over the past seven years,” said Busted. As a result, millennials have changed their perceptions of home buying, and they do not believe that buying a house will appreciate, causing them to be more cautious about buying a home. According to a Fannie Mae survey, 40% of millennials see buying a home as a safe investment, and 50% of baby boomers see buying a home as a great investment. According to the survey, about 36 percent of millennials say buying a home is a less risky investment.
(4) Fixed interest rates will gradually increase
The Mortgage Bankers Association expects the 30-year fixed rate to climb to 4.5% in the fourth quarter of this year, which remains an attractive rate. However, if forecasts are correct, fixed rates will gradually rise until mid-2015, reaching 5%. Mortgage analysts point out that if you’re still looking for a property and you’re not ready, there may be a little time left. However, if interest rates are expected to fall further, the chances may be very small.
(5) The number of houses for sale has increased
Home sales activity across the US was good this summer, but it wasn’t as fiery as industry insiders expected. One of the main reasons is the lack of homes for sale. However, this fall, that may start to change. According to The latest report from the National Association of Realtors, the total number of dwellings fell 1.7% through August, with only 2.31 million homes for sale. Analysts pointed out that as more homes are launched, for some buyers who have not yet found the ideal unit, there are more options or opportunities to purchase the right home. “The housing market is an indicator of the state of the economy, and I think it’s going to grow steadily over the next few months,” Cole said.
