Home Fixed interest Consumer confidence in housing market is dropping, data shows, but it’s still a good time to refinance

Consumer confidence in housing market is dropping, data shows, but it’s still a good time to refinance

0


Consumer confidence in the housing market appears to be declining, according to a new report from housing data provider BuildFax. (iStock)

Consumer confidence in the housing market appears to be declining, according to a new report from housing data provider BuildFax.

“Real estate activity continues to show signs of stabilization as the rate of growth of key indicators has slowed in recent months,” said Jonathan Kanarek, CEO of BuildFax. “The slight drop in renovation volume could suggest that consumer confidence is weakening in the middle [coronavirus] the delta variant problems and higher inflation.

“These factors have led to historically high building material costs and labor shortages that can deprive consumers of a home improvement,” he said. “However, it is too early to say whether consumers will completely reduce their spending on existing housing stock over the next few months.”

As the housing market slows, there are still options for current homeowners to use and save money. Refinancing a mortgage, for example, can help homeowners save significantly on their monthly payments in today’s low interest rate environment. Visit Credible to find your personalized interest rate and review loan terms to see how much you could save.

The increase in construction is good news

One of the reasons for low consumer confidence is the low level of housing supply, BuildFax explained. The report showed that trust levels fell to their lowest level since February.

“As the pace of growth has slowed in recent months, new construction activity saw a sharp increase again in August, a positive sign to help alleviate the housing shortage,” BuildFax said in its report. .

Single-family housing approvals rose 9.05% per year in August and 0.29% from July, meaning builders are slowly increasing the number of homes they will build.

Home improvement activity declined slightly for the first time since June 2020, but even against a background of rising prices, lower interest rates could help homeowners pay for their home improvement projects. Consider taking out a cash refinance using the equity in your current mortgage to fund your home improvements and repairs. Visit Credible to be prequalified in minutes without affecting your credit score.

Is Now the Right Time to Refinance? Here’s what you need to know

Despite the decline in confidence in the housing market, it’s still a good time to refinance a mortgage, and some experts say it’s even still a good time to buy a house. This is because interest rates remain at record highs. Current 30-year fixed-rate mortgage average remains below 3%, says Freddie Mac data.

Likewise, the average 15-year mortgage remains near its all-time low of 2.12%, and the five-year variable rate mortgage was on average 2.51%, according to data from Freddie Mac. If you want to take out a lower rate mortgage to lower your monthly mortgage payments, visit Credible to compare multiple lenders at once and choose the loan option with the best rates for your new loan.

When annual percentage rates drop, borrowers will pay a lower monthly payment, even if the home’s value is high. A borrower can spend more money on the price of the house and any other improvements, the more the interest rate goes down. If you are interested in mortgage refinancing on your loan amount, contact Credible to speak to a mortgage expert and get all of your questions answered.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


LEAVE A REPLY

Please enter your comment!
Please enter your name here