As the housing market continues to make its recovery from financial ruin, more and more consumers are looking to buy homes. The affordability factor is something that new home buyers are looking for, and the current housing climate provides just that.
Millennials are at the forefront of the new home buying era. Currently, they make up one of the largest subsections of American home buyers, and need ways to fund their purchases. The current housing market combined with the large number of consumers who need mortgages means that now is the best time to buy mortgage leads.
Less Stringent FHA Loan Requirements
In recent years, FHA has changed its minimum requirements for those looking for an FHA-backed mortgage.
Now, with a credit score as low as 620 and a 3.5 percent down payment, more people can afford their dream home. These types of buyers have likely never purchased a home before and, while they know they can likely get approved for an FHA mortgage, they still aren’t sure about who to get that mortgage from.
These types of mortgage leads are abundant, and they need a mortgage broker to service them.
Mortgage Rates Might Rise By 2016
The average mortgage rate is expected to be 5.1 percent by the beginning of 2016. Savvy home buyers who do their research want to get the best rate possible and are now looking for that perfect mortgage.
The jump to 5.1 percent interest can mean a significant change in the amount of money consumers spend on their mortgage; many want to buy now before its too late.
Rental Costs Are Rising
In many large cities, such as San Francisco, Dallas, Los Angeles, New York and Seattle, rental prices are going up very fast. Every year, more and more tenants are being pushed out of their apartments in big cities because landlords continue to raise rents beyond what they can afford.
These rising rental costs give millennials a good reason to buy a home, often for the same monthly price or less as their rental was in the past. The higher the rental costs, the more people will start to look for a home of their own.
This combination of factors affecting the housing and rental markets means more people will be looking for mortgages to buy a home, making right now a great time to buy mortgage leads. Millennials are hot on the market for the home of their dreams and they can’t start the search without a pre-approval in their hands.
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