Starter Home
Mortgage News

Low mortgages won’t help first-time homebuyers if the inventory isn’t there

As 30-year fixed mortgage rates continue to plummet in the United States, many existing homeowners are taking advantage of the trend by joining the wave of refinancing. 

Even with larger economic forces raising concerns about the U.S. economy, the housing market continues to broadly offer investment and savings opportunities that haven’t been around since November 2016 — the last time mortgage rates fell below 3.6%.

But there is a bit of a problem for first-time homebuyers, according to a new analysis by Bloomberg. There aren’t enough houses available in their price range:

While the drop in borrowing costs should be making purchases more affordable, competition is only heating up for entry-level properties, driving prices further out of reach. Buyers of pricier homes can more easily take advantage of low rates because they have access to a deeper pool of inventory. 

Prashant Gopal for Bloomberg

The report notes that sales of previously-owned homes hit a five-month high in July, rebounding from lower sales numbers earlier in the year. Yet purchases of homes valued at $100,000 or lower fell by 10% compared to the previous year. 

Notably, the supply of houses priced under $200,000 also dropped by about 10% compared to last July. There simply aren’t enough starter homes to go around for many aspiring homeowners to take advantage of the lower mortgage rates

This is a dilemma that will likely be a challenge to solve. Ideally, the current market would work for the benefit of those who want to own property for the first time. With newer construction favoring more luxurious homes, the availability of modest properties is becoming more scarce. 

Photo Credit: Thgusstavo Santana / Pexels

113 Comment

  1. Pingback: cheap viagra
  2. Pingback: cheap viagra
  3. Pingback: erection pills
  4. Pingback: cialis 10 mg
  5. Pingback: canada pharmacy
  6. Pingback: cialis mastercard
  7. Pingback: vardenafil 10mg
  8. Pingback: levitra canada
  9. Pingback: online slots
  10. Pingback: buy viagra
  11. Pingback: casinos
  12. Pingback: loans online
  13. Pingback: quick cash loans
  14. Pingback: viagra for sale
  15. Pingback: 20 cialis
  16. Pingback: casino online usa
  17. Pingback: Mybookie
  18. Pingback: new cialis
  19. Pingback: generic cialis
  20. Pingback: casino slot games
  21. Pingback: online viagra
  22. Pingback: brand viagra
  23. Pingback: buy viagra now
  24. Pingback: viagra price
  25. Pingback: order viagra
  26. Pingback: cialis price
  27. Pingback: viagra samples
  28. Pingback: otc viagra
  29. Pingback: buy Viagra 200mg
  30. Pingback: viagra pills
  31. Pingback: cialis coupon
  32. Pingback: order Cialis 60 mg
  33. Pingback: viagra online
  34. Pingback: Cialis 20mg cost
  35. Pingback: other
  36. Pingback: viagra substitute
  37. Pingback: viagra for sale
  38. Pingback: cialis pills
  39. Pingback: lexapro 10mg cheap
  40. Pingback: actos 30mg tablet
  41. Pingback: amaryl 4 mg canada
  42. Pingback: arava 20mg tablet
  43. Pingback: viagra no doctor
  44. Pingback: atarax 10mg uk
  45. Pingback: viagra men
  46. Pingback: dapoxetine cialis
  47. Pingback: viagra generic
  48. Pingback: cialis bayer 20
  49. Pingback: generic viagra

Comments are closed.