A Deeper Look Into First-Time Homebuyers
Cotswold Branch Manager, Jeff Gilmore, would like to take some time today to take a deeper look into today’s first-time homebuyers in the Charlotte area. Currently, about 38% of buyers are first-time homebuyers, when normally that number is north of 40% and closer to 45%.
The National Association of Realtors published a profile of homebuyers and sellers and here is what they found:
- The average age of a first-time homebuyer is 31.
- The average income is $67,400.
- 66% of first-time homebuyers are married couples.
They also published the sources of down payment of first-time homebuyers:
- 78% of their money was in checking/savings
- 27% of first-time homebuyers received a gift from a relative.
Our mortgage professionals make sure to educate first-time homebuyers on the TRUE impact that interest rates have on their buying power! According to Freddie Mac, long-term mortgage rates have risen on news of an improving job market. A 30-year fixed-rate mortgage averaged 4.37% in the week ending March 13, up from 4.28% from the previous week. A 15-year fix averaged 3.38%, up from 3.32%. A one-year adjustable-rate mortgage averaged 2.48%, down from 2.52% last week. Freddie Mac Chief Economist Frank Nothaft said, “The economy added 175,000 jobs in February, which was above the market consensus forecast and followed an upward revision of 25,000 jobs for the prior two months. Meanwhile, the unemployment rate nudged up to 6.7 percent, the first rate increase in over a year.”
This graphic shows the difference in monthly payments between where rates have been in the past and where they are forecasted to be in 2015, and as you can see there is a HUGE difference! All homebuyers need to see and understand this information and how it could apply to their financial plans. Seeing where the numbers are will likely encourage people to consider buying now as opposed to waiting.
Interested in owning a home of your own? Our mortgage professionals are more than happy to sit down with you and explain how to make your goals of homeownership a reality, and will answer all of your questions. Call us today for a free consultation. We are happy to put together numbers on a variety of home loan programs that make sense for you. At Fairway Independent Mortgage of the Carolinas, we strive to make the process of buying your first home easy and stress free.