Homebuyers are wisely trying to play it safe with their decision to avoid getting in financial trouble. Like our forefathers, current buyers are now looking at the long-term commitment of homeownership. Affordability, flexibility for aging in place and location are all part of the new home buying equation. Around 65 percent of survey participants found quality of life issues such as safety, local school system and commute times important factors in current homeownership trends.
The greatest amount of caution is being reserved for the home loan financing process. The survey results indicates that Americans with 30-year fixed-rate mortgages have a higher satisfaction rate (93 percent) than those with other home loan variant (76 percent satisfaction reported for those with hybrid adjustable rate mortgages [ARM] and 68 percent with ARMS). Financial experts have long advised homebuyers to go for traditional fixed mortgages as if you cannot qualify for them, you probably do not have the resources needed to buy a home.
The Dream of Homeownership
The current real estate market is unlike any other our nation has ever experienced. Along with the changes in the market place, consumer opinions have evolved. The findings of the Fannie Mae survey certainly support the theory that the dream of homeownership is still alive and well in America:
- Eighty percent respondents believe homeownership is important to the nation's economy.
- Seventy percent of all respondents still think that homeownership is one of the safest investment options
- Of surveyed renters, nearly 67 percent had plans to buy a home in the future.
Is it a Good Time to Buy?
Sixty-four percent of survey respondents think the time to buy a home is now, and they are right. The market is flooded with options, home prices are lower than the peak years and mortgage rates are at historic lows. It is certainly a buyer's market, however only those who are fully prepared for the financial challenges of homeownership, should take the leap.