Report: 75% Of Home Buyers Get Mortgage-Approved
The mental block that keeps renters from buying homes; today’s mortgage rates and the 5-day interest rate trend; and, the Pending Home Sales Index dropped for the fifth straight month.
Ellie Mae: 75% Of Purchase Loans Approved
Renters underestimate their ability to get approved for a mortgage.
A new study from government-backed mortgage group Fannie Mae shows two-thirds of today’s renters think it makes good financial sense to own home.
That’s not enough to give renters confidence to buy their first homes, however, because the same study shows renters staying put because the same percentage — approximately two-thirds of consumers — think “it would be difficult” to get mortgage-approved by a lender.
Renters want to stop renting, but don’t believe buying a home is possible. And, those renters are wrong.
Today’s home loan market is home buyer-friendly. Data proves it.
According to Ellie Mae, a mortgage technology company whose software processes millions of loan applications each year, mortgage lenders approved 75.0 percent of all mortgage applications received in May.
For buyers using FHA loans, conventional loans, VA loans, and USDA — approval rates are at or near all-time highs. Renters think it’s “difficult” to get approved. The opposite is true.
You can’t know what’s possible unless you talk with a lender. Check today’s rates to get started.
Today’s Mortgage Rates & Interest Rate Trends
Mortgage rates are improved today.
For the third time this week, mortgage rates are on the downswing. Buyers of homes and homeowners looking to refinance are benefitting from lower rates across all loan types.
Conventional mortgage rates and jumbo mortgage rates are lower, and the drop in interest rates for FHA, VA, and USDA is more pronounced, widening the spread between conventional and FHA pricing.
It’s an excellent time to consider a refinance.
- Conforming mortgages: Lower
- FHA mortgages: Lower
- VA mortgages: Lower
- USDA mortgages: Lower
- Jumbo mortgages: Lower
Lenders base your live mortgage rate quote on more than a dozen attributes including your loan size, your credit score, and the state in which you live.
Your choice in lenders matters, too, because different lenders offer different rates on different days; and, the lender with today’s best mortgage rates might not be the one with tomorrow’s.
Talk to two or more lenders before locking in. Find your preferred combination of rates, fees, and service.
Get A Free Rate Quote
NAR: Home Sales Projected To Drop
Fewer homes are going into contract between buyers and sellers this season.
According to the National Association of REALTORS® and its Pending Home Sales Index, the number of MLS-listed homes moved to “Pending” status dropped two percent in May from the year prior, marking the fifth straight month that pending home sales declined on an annualized basis.
A pending home is a home that’s under contract to be purchased but not yet closed.
Eighty percent of homes under contract close within sixty days, so the drop in the Pending Home Sales Index suggests that home sales will be lower this year as compared to last.
It doesn’t mean housing is on a downturn, however, and there are reasons why.
First, fewer homes are listed for sale this year, affecting home buyers’ ability to identify and offer on MLS-listed properties.
Sales are down, in part, because there are fewer homes available.
Second, the homes that are for sale are selling quickly.
NAR’s Existing Home Sales report shows that half of all homes sold in 26 days or fewer, which is the fewest number of days in recorded history. When homes sell quickly, it suggests a strong U.S. housing market.
And, third, the Pending Home Sales Index remains high, historically.
The index is baselined to a value of 100 which represents the housing market in 2001, the year the index started. 2001 was an excellent year for housing and any reading above 100 suggests the same.
The May 2018 Pending Home Sales Index registered 105.9.
So, despite five months of declines in pending sales, U.S. housing remains strong. Homes are selling, and they’re selling quickly — there aren’t that many available to purchase.
If your plans for this year or 2019 involve homeownership and buying a home, now would be an excellent time to connect with a real estate agent and talk about your options.
When you’re buying a home, preparation gives you an edge.