Currently, mortgage interest rates are at their lowest in history. The average fixed-rate mortgage for 30 years had touched a high of over 6.70 percent just prior to the 2007 summer of the Great Recession. As of the end of May in 2019, the average mortgage rate dipped to just below 4 percent. This has resulted in a strong demand during this home-buying season.
Buoyed by the low interest rates for mortgage, many people who had planned to purchase a home in 2020 have advanced their home-buying plans and are currently shopping around for houses. Different studies and surveys have been carried out to better comprehend the perceptions of home-buyers in the current housing marketplace as well as the varied factors associated with the process of purchasing a home that results in stress in home-buyers.
Presented below are some of the findings of these studies that included both repeat home-buyers and first-time home buyers.
- Most people concur that now is the right time to buy a home.
- As opposed to the currently renting, current homeowners believe that now is a good time to buy a house. More than 54 percent of people who have never owned a house and more than 63 percent of who have purchased a house in the past think that now is a right time to buy house.
- Over 60 percent of home-buyers with outstanding student loans and almost 2/3rd of those with credit card dues think that now is the right time to purchase a house. More than 50 percent of people without any kind of debt believe also concur with this.
- Also, just 50 percent of divorced home-buyers agree that now is a good time as compared to concurrence from almost 2/3rd of those home-buyers currently in a domestic partnership or married.
- More than 63 percent of millennial home buyers believe that the rates of home loan are too high to purchase. Over 39 percent from the Silent generation, nearly 55 percent of Gen Xers, and more than 51 percent of baby boomers think the same, i.e., the mortgages rates are very high.
- Over 62 percent of men were found to be optimistic about the current housing environment, while nearly 58 percent of women thought that the current time is favorable for buying a home.
- The higher the credit score of a home-buyer, the better is the likelihood of that buyer having a positive opinion about purchasing a home. A little more than just half of homebuyers with a credit score of 578 or below think that it is a good time to purchase a home today. Comparatively, nearly 70 percent of buyers with a score of 741 or above feel that now is the right time.
- 40 percent of homebuyers get most stressed when trying to find a house that fits their budget. More than 21 percent feel that the most stressful aspect of the home purchasing experience is locating a house that meets their requirements. People with debt other than mortgage have a greater likelihood of regarding affordability of home and taking out a home loan as being the most anxiety-causing aspect of home-purchasing.