A new survey by LendingTree reveals that more than half of homebuyers agree that now is a good time to buy a home.
In total, 55% of homebuyers think that now is a good time to buy, 65% of homebuyers with credit card debt agree, and 62% with student loan debt believe now is a good time to purchase a home.
The survey found that those with higher credit scores have a more positive outlook on homebuying, as 69% of homebuyers with a credit score of 740 or higher think now is the time to buy. In comparison, just 52% of buyers with credit scores lower than 579 said now is a good time to buy.
LendingTree’s survey also found that men are more optimistic about housing than women, with 63% of men believing now is the time to buy a home.
According to the latest existing home sales report by the National Association of Realtors (NAR), existing home sales increased for the first time in two months, with May’s rate increasing 2.5%. A total of 5.34 million homes were sold in May.
“The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” said Lawrene Yun, Chief Economist at the NAR.
The view of mortgage rates, though, is viewed differently by the generations, as 64% of millennials feel mortgage rates are too high, according to LendingTree.
Older generations agree to a lesser extent, with 54% of Gen Xers, 52% of baby boomers and 40% of the silent generation still feeling mortgage rates are too high.
Freddie Mac’s latest Primary Mortgage Market Survey (PMMS) stated the average rate for a 30-year fixed rate mortgage has stabilized near 3.8%, which is a decline from 4.57% last year.
“While the continued drop in mortgage rates has paused, homebuyer demand has not,” said Sam Khater, Freddie Mac’s Chief Economist. “This is evident in increased purchase activity and loan amounts, indicating that homebuyers still have the willingness and capacity to purchase homes. Today’s low rates, strong job market, solid wage growth and consumer confidence are typically important drivers of home sales.”