First-time Homebuyers Are Making a Comeback
TheRealDeal.com spoke with Federal Reserve Chairman Janet Yellen about the real estate market and the upsurge of new homeowners.
Yellen cited rising home values as an important factor in boosting the market and first-time homebuyer participation. While elevated prices are good for homeowners and landlords, it tends to increase the cost of rent. With rent prices increasing rapidly, many renters are opting to own.
Two more factors are low interest rates and the loosening of lending standards. While low interest rates makes owning more affordable, easing lending standards makes it easier for first-time buyers to obtain a mortgage.
The article even mentioned that borrowers who have been turned down should try again. Since annual mortgage insurance premium rates were cut drastically in late January, low-interest loans are now affordable for buyers that may not have qualified before.
At Colony Reserve, purchasing a home is even easier for first-time buyers. Not only are prices in the community already affordable, but each home comes with a number of luxurious standard features beyond what’s offered at other communities.
That means that instead of paying a landlord the first month, last month, and deposit, you may be able to put a down payment on a brand new home.
To learn more about purchasing your first home, Contact us today.