Housing 2015: The return of first-time home buyers

2015 is expected to be the year first time home buyers start buying houses again

In the wake of the last housing market crash, things became tougher for first time home buyers to get into their first house. Lenders tightened restrictions for loans, banks held on to inventory to keep prices from falling further, and new construction homes halted, leading to a squeeze on first time home buyers.

Since then, many people (specifically millennials) have been biding their time renting homes instead of buying them.

This article by Les Christie of CNN Money examines why first time home buyers will be welcomed to the house buying party in 2015.

The first and most important reason Christie points to as a reason for the rebound is looser lending standards. Not only are Freddie Mac and Fannie Mae relaxing the credit standards, they are also backing loans where the borrower has as little as a 3% down payment.

Builders are building again. More houses are being added to the market to keep pace with the number of available buyers in the market.

Interest rates will remain low. Many expect interest rates to increase somewhat in 2015. Even with an increase, they think interest levels will stay below 5% which is low historically.

Not listed in the article, but mentioned in the accompanying video is rising rent prices. Rent prices have increased to the point where it makes sense for a lot of consumers to buy because their monthly payments will be much lower than what it costs to rent.

Make 2015 the year you buy a home and build a stronger financial future! Get a free weekly list of foreclosures in Kansas City to browse at your leisure.

Tags: , , , , ,

Leave A Reply (No comments so far)

No comments yet