Much of the news related to mortgages and real estate these days continues to revolve around persistently low rates and the tight housing market. Bankrate’s top stories further highlight those trends this week.
1. Homebuyer regrets, they have a few
Those struggling to close on a real estate deal may take some solace in the fact that even successful homebuyers aren’t always thrilled. A new survey by Bankrate and YouGov reveals that millennial homebuyers, especially, are likely to have some remorse about their purchase, particularly related to unexpected costs. Meanwhile, minority would-be homebuyers continue struggling to break into the market at all.
2. What to know about inflation
Inflation has surged above 4 percent these days — roughly a full percentage point higher than the average 30-year mortgage rate. It’s an unusual reversal for those two metrics, but what does it mean for mortgages?
3. The ludicrous pace of home sales
Strong demand and low inventory are making real estate transactions move unusually quickly. In April, properties sat on the market for an average of just 32 days nationwide. Wichita had the fastest average sale timeline last month, with listings averaging just 12 days.
4. Forbearance protected the market in addition to homeowners
A big reason there was no housing crash as the economy tanked last year was the government’s generous forbearance policy. Millions of homeowners put a pause on their mortgage payments, giving families extra breathing room in their monthly budgets at a time of great financial uncertainty. Other factors contributed to the current housing boom, of course, but the floor of forbearance undergirds much of the current conditions.
5. A surge of mortgage complaints
The Consumer Financial Protection Bureau reported a major increase in mortgage-related complaints in March, largely related to poor communication by lenders as homeowners came out of forbearance. For homeowners, it’s crucial to be proactive if your financial situation is fluid. Reach out to your lender early and often, and make sure you’re on the same page options in your circumstances.