The REAL Driver to Buying A Home

By
Real Estate Agent with HomeSmart Real Estate BR632450000

What is the REAL Driver to Buying a Home? Buying a home is still the American Dream. (Photo: Adiana Voicu- Pixabay)

Many say the "Driver" is home prices, others say the mortgage rate, but the real answer is JOBS. Take a look at this report from Mortgage Market Guide.

The Real Driver Behind Homeownership

 

A recent forecast by Freddie Mac read that due to the continued surge in home prices, potential homebuyers may be whisked to the sidelines due to the increase in prices. The latest S&P Case-Shiller Home Price Index showed that prices were up nearly 20% annually at the beginning of September but did say that it has seen some signs of decelerating. Time will tell.

1. Home Prices: Freddie Mac went on to say that the pace of home sales has cooled since the first quarter of 2021 when it was at 7.2 million. It forecasts that home sales could reach 6.8 million for 2021 and 2022. Also, house price growth of 16.9% is seen for 2021 but may slow to 7.0% in 2022.

2, Mortgage Rates: On the origination front, home purchase mortgage originations are expected at $1.9 trillion in 2021 and reach $2.1 trillion in 2022. With a higher 30-year fixed-rate mortgage forecast for 2022 (3.5%), refinance activity is expected at $2.6 trillion in 2021 and decline to just below $1.0 trillion in 2022. Overall, total originations will decrease from $4.5 trillion in 2021 to $3.1 trillion in 2022.

To put it in perspective, the 30-year fixed rate mortgage topped out at 7.16% in 2001 and near 19% in 1981.

Bottom line:

3. Jobs: Rates aside, the real driver behind homeownership is JOBS. If you are employed and are confident you can keep that job or switch to a new position, then buying a home becomes an easier decision.

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Posted by

Jeffrey Masich, Associate Broker, REALTOR®, MBA, GRI, BS Accounting

HomeSmart

Scottsdale, Arizona

JeffMasich@ArizonaHomesLand.com

http://ArizonaHomesLand.com

480-242-6500

 

 

Comments (1)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Amen to this great post, it is a combination of all but the real story is if you are not working you can not get a loan low or high interest it does not matter. Tell that to the politicians:)Endre

Nov 20, 2021 10:22 PM