What’s stopping first-time buyers from entering the market? The December rate cut was far from enough to motivate most people to purchase their first house.
A new report from BPG Inspections, a Fidelity National Financial company, found that 56% feel either hopeless or overwhelmed about buying their first home, and 69% are scared of purchasing a home with hidden issues.
The report also explored their top affordability concerns:
- 50% are most worried about monthly payments
- 30% are most worried about a down payment
- 11% are most worried about affording maintenance and repairs
What’s the tipping point of affordability? 62% would actively house hunt if mortgage rates fall to an “affordable” level, which they peg at 4.86% maximum for a 30-year fixed mortgage. If rates fall by 1%, 40% would actively begin house hunting and 28% will feel pressured to buy.
Take a look at the full report for deeper insights into what would finally push hesitant buyers into the market.
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