It’s a Seller’s Market, Don’t Try to Buy Alone
A report yesterday found that mortgage applications slid 2.8% even though interest rates remained low. Nonetheless, it’s still a seller’s market and the slide in mortgage applications can even reflect that. The prices of homes nationwide have risen over the past few years following the housing crisis. More Americans have homes and given a general feeling of financial stability, many want to move into a nicer home or a more affluent neighborhood. However, higher home ownership combined with low-interest rates makes for a fantastic market, for sellers that is. Though it’s never advised that you buy in a seller’s market, there are ways to lower the price of your dream home.
The Report: 2.8% Slide in Mortgage Applications
- Total mortgage application volume fell 2.8 percent on a seasonally adjusted basis last week compared to the previous week
- Mortgage applications to refinance a home loan fell 4 percent for the week, 41 percent lower for the same week compared to a year ago
- Median sale price for previously owned homes this past spring was up 6 percent compared to spring 2016, media prices are up to $244,800
- Demand is outpacing supply throughout the United States
When demand outpaces supply, especially in the housing market, sellers know that they can raise the price and won’t have to negotiate on price as aggressively. If a home is in a desirable neighborhood, sellers are in an even better position.
If You Want to Buy, Contact a Mortgage Broker
You could go it alone and work through your realtor and bank. You wouldn’t be able to set yourself up for an ideal financial situation. That’s because sellers know they can gouge buyers if they’re buying in the current market. Mortgage brokers are a third party solution to alleviate the problem of buying in a seller’s market.
While you work with the seller, a mortgage broker will take on the tedious task of getting you, the buyer, the ideal mortgage rate. Mortgage brokers can also reduce closing costs and can specialize in USDA Loans, FHA Loans and VA Loans. Mortgage brokers do the heavy lifting when it comes to getting a housing loan. Regardless of the interest rates, mortgage brokers are able to get you the best financial outcome. So while you work with the seller, mortgage brokers handle the stress of the financial aspect of buying a home.