This week’s Highlights:
- Fannie Mae National Housing Survey indicates consumer confidence in the housing market has fallen
- What is a bridge loan, and how do you know if it’s right for you?
Homebuyer confidence is has dipped since 2019
The Fannie Mae Home Purchase Sentiment Index® measures how people feel about the current home buying market. One of the most recent reports from Fannie Mae was published in December and indicated that consumers are wearier of the market than they were this time last year. Check the stats:
- 57% of people surveyed think it’s a good time to buy a home, down from 67% in 2019
- 59% think it’s a good time to sell, down from 73%
- 41% suspect prices will go up over the next 12 months, down from 47%
- 8% of people think mortgage rates will continue to get lower
Keep in mind this is a consumer survey, so those who respond might not necessarily have all the industry information that will indicate one way or another. But it’s important to notice people’s expectations for 2021, because their outlook will heavily influence the home buying market.
Make the decision to refinance easier with Accunet mortgage and our team of refinance experts—click here to get started.
What you need to know about Bridge Loans
Let’s say you’re worried about being able to sell your home but you’re ready to put an offer on a new one. If you just write a contingency that says “I’ll buy your house as soon as I sell mine,” the chances of that getting accepted are pretty low (especially in the current market). That’s where bridge loans come in.
A bridge loan is a temporary loan that allows you to purchase a new home and still have your current home on the market. One of the greatest benefits of looking into a bridge loan is that you might have a few months of lower payments than you would have with other home loans.
Every situation is different, but baseline considerations for qualifying for a bridge loan are:
- At least 20% equity in your current home
- Whether you can afford to own two homes
- Qualifying credit score
- Current market expectations
Learn more about the rules of refinance with Accunet’s refi rules of thumb.
What happens if you don’t qualify for a bridge loan?
There are plenty of alternatives if you can’t get a bridge loan. If you have a monetary gift to use as a downpayment, that’s our initial recommendation. We also recommend looking into a piggyback loan, which will allow you to buy a house using two mortgages at the same time.
The market is tough for people on the move right now because inventory is low, so we get it. The main thing to keep in mind is not necessarily what kind of loan options you have, but making sure you work with a mortgage lending company that has all the necessary tools in their tool belt… and make sure they know how to use them!
Buying a new home? Start here so you know what to expect from the process!