What Does an Unstable Housing Market Mean for Me?
Home Buyers. Subprime lending has tightened considerably, so fewer buyers are entering the housing market. While this causes pressure for sellers, buyers are able to buy homes at lower prices. Despite instability, mortgage rates remain at all-time lows. It’s a very good time to buy a home, but consumers are wise to steer clear of lenders negatively affected by the subprime market.
Homeowners. Those with fixed-rate mortgages should breathe a bit easier. Those with adjustable-rate mortgages might consider refinancing to a fixed-rate loan to mitigate risk. While adjustable rates can allow new buyers to meet tight budgets, the fix can be temporary and can leave homeowners with even more constricting budgets.
Non-Homeowners. Renters hoping to own a home in the future need a good savings plan, a commitment to use credit wisely to establish a positive credit history, and a strategy for making timely bill payments, such as Bill Payer, an automated tool we offer members to facilitate scheduled, verifiable payments. The future looks good for homebuyers with established good credit.