Positive market conditions fail to spur rapid home buying demand

Fewer Americans plan purchase homes in the next six months.

Many real estate professionals are advising prospective homebuyers with available cash to start qualifying for a mortgage, CNBC reports.

This is because market conditions are prime for selling as the most recent Standard & Poor’s/Case-Shiller Home Price Index shows that home prices are nearly one-third more affordable than they were at the housing market’s peak. In addition, mortgage loan rates continue to hover near all-time lows.

However, despite increasing affordability in the housing market, many potential home-buyers are still waiting on the sidelines for their opportunity to capitalize on the conditions – defying expectations and housing market fundamentals, says CNBC.

This could be a result of a drop in the Consumer Confidence Index, says the source. In January, the index found that fewer Americans plan to purchase homes in the next six months while they wait for economic conditions to continue improving.

As a result of all these indicators, the rate of homeownership continues to fall, while rental demand and occupancy have reported significant increases during recent months.

Meanwhile, government plans to convert distressed properties into rental units could help improve buyer confidence and prompt them to capitalize on the prime housing market conditions.
Arming yourself with the most up-to-date housing market details is a great way to stay informed of current mortgage loan rates. Freedom Mortgage offers some of the most extensive news, homeowner tips and personal finance information in the industry.