Millennials just need a push.
With just a little help, and now from Washington, millennial homebuyers will hopefully come out of hibernation and start buying again. This is a much needed and healthy part of the real estate environment that has been lacking in recent years due to several factors. Among them, the lack of ease in gaining a mortgage, high sales prices, low inventory, competition from cash, and lastly, just a simple lack of interest.
How did we come to this? There is plenty of blame to go around, but essentially this is nothing more than a by-product of the housing meltdown. Now it is part of the recovery. Since homeownership has fallen to its lowest levels in 20 years and for those under the age of 35 to its lowest levels in 30 years the time has come to take notice and give these buyers a nudge.
Therefore, Washington has implemented some mortgage assistance moves to help. First, those with an FHA loan have had their mortgage insurance cut from 1.35% to 0.85%. Secondly, the minimum down payment for Fannie Mae and Freddie Mac has been dropped from 5% to 3% down.
My hope is that millennials will notice these changes and start shopping again. These types of incentives need to be taken advantage of before they disappear.
Read up on the latest article from Marketwatch here. http://www.marketwatch.com/story/new-mortgage-rules-help-millennial-home-buyers-2015-01-28
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