People used to get settled down much earlier in life. If you didn’t have a life plan in your early twenties, you were an oddity. As of late though, people are pushing back wedding dates and choosing life experience instead a mortgage loan. So what has changed?
The Current Trend
These days in the crazy housing market, families are now looking to rent homes instead and push back buying a home. Tighter credit restrictions and a lack of desire to being tied to a mortgage have caused a shift in the housing market.
Single-family renters are on the rise since 2006. These families live in single-family homes or complexes with four units or less. These types of homes have shown a 30% growth rate, surpassing home ownership more and more each year.
Why Are People Renting?
So why the sudden shift away from home ownership? Lifestyle choices play a huge part in this. People are getting married and having children later in life, thus making renting a more economical choice. Student loan debt also plays a part, making saving up for that down payment less feasible at a younger age. Tight credit restrictions make it harder to acquire a mortgage loan, especially with overhanging debt.
Also now more than ever, single people are purchasing homes on their own, which means they are saving up for down payments by themselves. Renting might not be a choice, but a necessity.
When You’re Ready To Purchase
If you are in a place to buy, there is less competition because people are choosing to rent a home longer in life. Now is the time to purchase the home of your dreams. Purchasing a home a little later in life will give you the opportunity to not rush into a home you don’t love. You are more likely to know your list of “must haves” and what time of home will best for you.
While the market is still competitive, waiting longer to buy means that you are settled in a career, have student loans paid off and are in a better place financially. Being in a good financial place means that you will be approved for a mortgage loan and have a better interest rate. You are a lower risk for your lender.
Are You Ready To Get A Mortgage Loan?
Taking your time and figuring out your life before you make a huge home purchase can ease the stress of taking on a mortgage. You have to choose the timeline that works best for you. You will know when you’re ready to go from being a renter to being a homeowner. When you are ready, we are here to help you with your home loan.
Get in touch today!