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What You Should Know About Getting a Mortgage Today
If you’ve been putting off buying a home because you thought getting approved would be too hard, know this: qualifying for a mortgage is starting to get a bit more achievable, but lending standards are still strong.
Lenders are making it slightly easier for well-qualified buyers to access financing, which is opening more doors for people ready to make a move.
So, if strict requirements were holding you back, this shift could be the opportunity you’ve been waiting for, without repeating the risky lending practices that led to the housing crash back in 2008.
Lenders Are Opening More Doors
Banks are offering credit to more people in an effort to boost activity in the housing market, including buyers who have lower credit scores or smaller down payments. And that means more people are getting approved for mortgages.
But it doesn’t mean we’re heading for another crash like 2008. Even with the slight easing lately, lending standards today are still much tighter than they were back then.
According to the Mortgage Bankers Association (MBA), the Mortgage Credit Availability Index (MCAI) has been going up. This index shows how easy or hard it is for people to get a mortgage.
When the index rises, it means banks are easing their lending standards. And in May, credit availability hit its highest point in almost three years (see graph below):
Why does this matter to you? It means you may now be able to qualify for a mortgage that you wouldn’t have just a few months ago. The National Association of Underwriters (NAMU) explains:
“Mortgage credit availability surged in May, reaching its highest level since August 2022. The uptick signals that lenders are increasingly willing to loosen underwriting standards, providing borrowers with greater access to financing options . . .”
But What About 2008?
Now, you might be thinking, “Didn’t looser lending standards play a role in the 2008 housing crash?” That’s a smart question – and an important one. But here’s the difference. While credit availability is rising, lending standards are still under control.
Based on MCAI data going all the way back to 2004, today’s lending levels are still way below what they were leading up to the housing bubble (see graph below):
So, increasing mortgage credit availability right now isn’t a concern. It’s just a good thing for anyone looking to buy a home. As Brett Hively, SVP of Mortgage, Finance, and Strategy at Ameris Bancorp, recently said:
“This uptick is opening the door for many borrowers to move forward with a home purchase or a refinance program.”
Bottom Line
So, if you’ve been holding back because you thought you couldn’t get approved for a mortgage, it’s worth finding out what’s possible today. Talk with a lender about your options to see if you’re ready to take that next step toward homeownership.
Multi-Generational Homebuying Hit a Record High – Here’s Why
Multi-generational living is on the rise. According to the National Association of Realtors (NAR), 17% of homebuyers purchase a home to share with parents, adult children, or extended family. That’s the highest share ever recorded by NAR (see graph below):
And what’s behind the increase? Affordability. NAR explains:
“In 2024, a notable 36% of homebuyers cited “cost savings” as the primary reason for purchasing a multigenerational home—a significant increase from just 15% in 2015.”
In the past, caregiving was the leading motivator – especially for those looking to support aging parents. And while that’s still important, affordability is now the #1 motivator. And with current market conditions, that’s not really a surprise.
Pooling Resources Can Help Make Homeownership Possible
With today’s home prices and mortgage rates, it can be hard for people to afford a home on their own. That’s why more families are teaming up and pooling their resources.
By combining incomes and sharing expenses like the mortgage, utility bills, and more, multi-generational living offers a way to overcome financial challenges that might otherwise put homeownership out of reach. As Rick Sharga, Founder and CEO at CJ Patrick Company, explains:
“There are a few ways to improve affordability, at least marginally. . . purchase a property with a family member — there are a growing number of multi-generational households across the country today, and affordability is one of the reasons for this.”
But this strategy doesn’t just help with affordability. It may even allow you to get a larger home than you’d qualify for on your own and that gives everyone a bit more breathing room. As Chris Berk, VP of Mortgage Insights at Veterans United, explains:
“Multigenerational homes are more than a trend: They are a meaningful solution for families looking to care for one another while making the most of their homebuying power.”
And momentum may be growing. Nearly 3 in 10 (28%) of homebuyers say they’re planning to purchase a multi-generational home.
Maybe it’s a solution that would make sense for you too. The best way to find out? Talk to a local real estate agent who can help you decide if this option would work for you.
Bottom Line
If your budget feels tight, buying a multi-generational home could be a smart solution.
Would you ever consider buying a home with a family member? Why or why not?
Connect with an agent to talk through your options.
Why Homeownership Is Going To Be Worth It
Life can feel a bit unpredictable these days. What’s happening with inflation? The economy? The housing market? But in the middle of all that uncertainty, there’s one thing a lot of people still crave – a place to call their own.
Because when everything else feels up in the air, home can be the thing that grounds you. As the experts at 1000WATT put it:
“Homeownership isn’t primarily financial anymore. . . Across all demographics, emotional and lifestyle factors consistently outrank wealth-building as motivators.”
Here’s what owning a home can mean for you, especially right now.
Freedom To Make It Yours
When you’re a homeowner, you don’t need to ask permission to paint a wall, hang a gallery of your favorite art, or redo the floors. You have the freedom to create a space that reflects who you are, all the way from the light fixtures to the paint colors.
Pro Tip: Just be mindful about exterior changes, if you buy a home in a community that has a homeowner’s association (HOA). There may be some approvals you’d need to get for select outdoor changes.
More Privacy, More Peace
Owning your home can give you a sense of peace you didn’t even realize you were missing. It’s a comfortable place where you feel secure and can relax, enjoy your privacy, and unwind after a long day.
Room To Grow
Whether it’s starting a family, setting up a home office for your new career, or finally building that home gym in the garage so you can hit your fitness goals, owning gives you the space to live life on your terms.
A Stronger Sense of Community
When you own, you’re not just passing through, you’re putting down roots. That often leads to stronger ties with your community, more connection to your neighborhood, and a deeper feeling of belonging where you live. That’s very different from the temporary nature of renting.
A Feeling of Accomplishment
There’s something powerful about getting the keys and walking into your own front door for the first time. It’s more than pride, it’s personal satisfaction. A quiet and meaningful sense of “I did this.”
Sure, it’s not always easy for first-time homebuyers right now. The market today requires patience, strategy, and sometimes a little creative problem-solving. But it’s still worth it. As Realtor.com says:
“Buying a home is a major commitment, but it’s also incredibly rewarding.”
When you get those keys in your hand, when you realize this place is where your life gets to unfold, it clicks. The stress, the waiting, the planning – all of it led you home.
Bottom Line
There are a lot of things out of your control right now. But building a life in a space that’s truly yours? That’s still possible with the right strategy and expert help. Talk to a local agent about how to make it happen.
What would it mean for you to finally have a place to call your own?
More Homes for Sale Isn’t a Warning Sign – It’s Your Buying Opportunity
Maybe you’ve heard the number of homes for sale has reached a recent high. And it might make you question if this is the start of another housing market crash.
But the reality is, the data proves that’s just not the case. In most areas, more inventory isn’t bad news. It’s actually a sign of the market returning to a more stable, healthy place.
What’s Going on With Inventory?
Based on the latest data from Realtor.com, inventory just hit its highest point since 2020, shown with the white line in the graph below.
But what you need to realize is, at the same time, inventory levels still haven’t returned to pre-pandemic norms (shown in gray):
That means there are more homes for sale now than there have been in quite some time.
And while it’s true inventory is up significantly compared to where it was over the last few years, the number of homes on the market is still well below typical levels. And that’s important context.
Why This Isn’t the Problem A Lot of People Think It Is
Some people hear inventory’s rising and immediately think about 2008. Because back then, inventory spiked just before the market crashed. But today’s situation is very different.
Here’s the key reason why. We don’t have a surplus of homes; we have a deficit to climb out of. What we’re dealing with is a long-term housing shortage – and it’s a big one.
The red bars in the graph below show all the years where housing starts (new builds) didn’t keep up with household formation, going all the way back to 2012. The deeper the bars in the graph, the more the housing deficit grew (see graph below):
And one of the reasons this housing shortage kept growing is because new home construction just didn’t keep up with the number of people who need to buy homes. In fact, the U.S. is actually short millions of homes at this point, and it will take years to overcome that gap. Realtor.com says:
“At a 2024 rate of construction relative to household formations and pent-up demand, it would take 7.5 years to close the housing gap.”
That means, in most areas, there isn’t a risk of having too many houses on the market right now. It’s quite the opposite – a vast majority of markets actually need more homes.
Which is why, even though inventory is rising, it’s not a problem on a national scale. It’s just helping to fill a gap that’s been growing for years.
Bottom Line
Don’t let the headlines scare you. Rising inventory isn’t a sign of a crash. It’s a step toward a more normal, stable housing market.
Thinking about an Adjustable-Rate Mortgage? Read This First.
If you’ve been house hunting lately, you’ve probably felt the sting of today’s mortgage rates. And it’s because of those rates and rising home prices that many homebuyers are starting to explore other types of loans to make the numbers work. And one option that’s gaining popularity? Adjustable-rate mortgages (ARMs).
If you remember the crash in 2008, this may bring up some concerns. But don’t worry. Today’s ARMs aren’t the same. Here’s why.
Back then, some buyers were given loans they couldn’t afford after the rates adjusted. But now, lenders are more cautious, and they evaluate whether you could still afford the loan if your rate increases. So, don’t assume the return of ARMs means another crash. Right now, it just shows some buyers are looking for creative solutions when affordability is tough.
You can see the recent trend in this data from the Mortgage Bankers Association (MBA). More people are opting for ARMs right now (see graph below):
And while ARMs aren’t right for everyone, in certain situations they do have their benefits.
How an Adjustable-Rate Mortgage Works
Here’s how Business Insider explains the main difference between a fixed-rate mortgage and an adjustable-rate mortgage:
“With a fixed-rate mortgage, your interest rate remains the same for the entire time you have the loan. This keeps your monthly payment the same for years . . . adjustable-rate mortgages work differently. You’ll start off with the same rate for a few years, but after that, your rate can change periodically. This means that if average rates have gone up, your mortgage payment will increase. If they’ve gone down, your payment will decrease.”
Of course, things like taxes or homeowner’s insurance can still have an impact on a fixed-rate loan, but the baseline of your mortgage payment doesn’t change much. Adjustable-rate mortgages don’t work the same way.
Pros and Cons of an ARM
Here’s a little more information on why some buyers are giving ARMs another look. They offer some pretty appealing upsides, like a lower initial rate. As Business Insider explains:
“Because ARM rates are typically lower than fixed mortgage rates, they can help buyers find affordability when rates are high. With a lower ARM rate, you can get a smaller monthly payment or afford more house than you could with a fixed-rate loan.”
On the flip side, just remember, if you have an ARM, your rate will change over time. As Barron’s explains there’s the potential for higher costs later:
“Adjustable-rate loans offer a lower initial rate, but recalculate after a period. That is a plus for borrowers if rates come down in the future, or if a borrower sells before the fixed period ends, but can lead to higher costs if they hold on to their home and rates go up.”
So, while the upfront savings can be helpful now, you’ll want to think through what could happen if you’re still in that home when your initial rate ends. Because while projections show rates are expected to ease a bit over the next year or two, no forecast is guaranteed.
That’s why it’s essential to talk with your lender and financial advisor about all your options and whether an ARM aligns with your financial goals and your comfort with risk.
Bottom Line
For the right buyer, ARMs can offer some big advantages. But they’re not one-size-fits-all. The key is understanding how they work, weighing the pros and cons, and thinking through if they’d be something that would work for you financially. And that’s why you need to talk to a trusted lender and financial advisor before you make any decisions.
Real Estate Is Voted the Best Long-Term Investment 12 Years in a Row
Some Highlights
- In a recent poll from Gallup, real estate has once again been voted the best long-term investment. And it’s claimed that top spot for 12 straight years now.
- That’s because homeownership is one of the top ways to build your wealth, even with home price growth moderating and ongoing economic uncertainty.
- If you’ve been trying to decide if it makes sense to buy a home today, connect with an agent to talk about the programs that can help you become a homeowner.
Let’s connect to find out how I can help you find your perfect home with the best deal possible.
What Buyers Need To Know About Homeowners Association Fees
When buying a home, you’re probably thinking about mortgage rates, home prices, your down payment, and maybe even your closing costs. But you may not be thinking about homeowners association (HOA) fees. While you won’t necessarily have these, you should know it’s a possibility, depending on where you decide to live.
A homeowners association is basically an organization that oversees a housing community (including shared spaces) and sets and enforces rules for things like upkeep. Some buyers love the perks that come with an HOA, others may see the fees as an extra expense. The key is knowing what they cover and whether the benefits outweigh the costs for you.
The Benefits of Having an HOA
Think about this. If you’ve fallen in love with a home because of how beautiful the community is – maybe it’s the landscaping, the well-maintained streets, or the overall curb appeal – there’s a good chance the HOA is one of the reasons why it looks so good. Here are some of the biggest perks:
- Neighborhood Maintenance: Many HOAs cover landscaping, snow removal, and upkeep of common areas. This helps maintain the neighborhood’s overall appearance.
- Amenities: Depending on the neighborhood, an HOA could also include access to perks like a pool, clubhouse, fitness center, or even private security. In these cases, while you have to pay an HOA fee, you’re also saving money in some ways because you don’t need to have separate gym or pool memberships anymore.
- Property Value Protection: Since HOAs enforce community standards, they prevent homes from falling into disrepair. So, you don’t have to worry about nearby eyesores hurting your property value.
- Less Personal Upkeep: In some communities, HOAs even take care of exterior maintenance, roof repairs, or other shared responsibilities, reducing the work for homeowners.
HOA Fees: More Common, Especially in Newer Neighborhoods
Does every house have HOA fees? No, not all homes have them. But they are common, especially in newer communities. In fact, over 80% of newly built single-family homes are now part of an HOA, according to the Wall Street Journal (see graph below):
But it’s not just new builds that have homeowners associations. Homes that were previously lived in may have an HOA fee too. According to Axios roughly 4 out of every 10 homes had an HOA in 2024.
HOA Fees and Your Home Search
Ask your agent about which homes do and do not have HOA fees as part of your search – and how much the fees are. Some neighborhoods have quarterly dues, some have monthly, some don’t have any at all. To give you some sort of baseline though, the median HOA fee rose last year to $125 per month, based on a report from Realtor.com.
But remember, the costs vary and sometimes these fees give you access to great perks. As Danielle Hale, Chief Economist at Realtor.com, explains:
“When considering a home with an HOA, buyers should work to understand what benefits it provides like maintenance, security, or communal amenities, and how the HOA fees factor into their overall budget.”
Bottom Line
Before buying a home in an HOA community, it’s a good idea to review the rules and fees so you know exactly what’s included, how that fits into your overall budget, and what restrictions may apply.
Would you rather pay an HOA fee for added perks, or skip it and have full control over your property?
Let’s connect to find out how I can help you find your perfect home with the best deal possible.
More Homes for Sale Isn’t a Warning Sign – It’s Your Buying Opportunity
Maybe you’ve heard the number of homes for sale has reached a recent high. And it might make you question if this is the start of another housing market crash.
But the reality is, the data proves that’s just not the case. In most areas, more inventory isn’t bad news. It’s actually a sign of the market returning to a more stable, healthy place.
What’s Going on With Inventory?
Based on the latest data from Realtor.com, inventory just hit its highest point since 2020, shown with the white line in the graph below.
But what you need to realize is, at the same time, inventory levels still haven’t returned to pre-pandemic norms (shown in gray):
That means there are more homes for sale now than there have been in quite some time.
And while it’s true inventory is up significantly compared to where it was over the last few years, the number of homes on the market is still well below typical levels. And that’s important context.
Why This Isn’t the Problem A Lot of People Think It Is
Some people hear inventory’s rising and immediately think about 2008. Because back then, inventory spiked just before the market crashed. But today’s situation is very different.
Here’s the key reason why. We don’t have a surplus of homes; we have a deficit to climb out of. What we’re dealing with is a long-term housing shortage – and it’s a big one.
The red bars in the graph below show all the years where housing starts (new builds) didn’t keep up with household formation, going all the way back to 2012. The deeper the bars in the graph, the more the housing deficit grew (see graph below):
And one of the reasons this housing shortage kept growing is because new home construction just didn’t keep up with the number of people who need to buy homes. In fact, the U.S. is actually short millions of homes at this point, and it will take years to overcome that gap. Realtor.com says:
“At a 2024 rate of construction relative to household formations and pent-up demand, it would take 7.5 years to close the housing gap.”
That means, in most areas, there isn’t a risk of having too many houses on the market right now. It’s quite the opposite – a vast majority of markets actually need more homes.
Which is why, even though inventory is rising, it’s not a problem on a national scale. It’s just helping to fill a gap that’s been growing for years.
Bottom Line
Don’t let the headlines scare you. Rising inventory isn’t a sign of a crash. It’s a step toward a more normal, stable housing market.
Let’s connect to find out how I can help you find your perfect home with the best deal possible.
Homebuyer Concessions and Incentives: How to Save on Closing Costs, Rates & More
In many markets today, inventory is rising. Because of this, builders and sellers are offering more to attract buyers. These offers are called concessions or incentives—and they can save you money.
💡 Concessions vs. Incentives: What’s the Difference?
Although the terms are often used interchangeably, they have different meanings.
-
A concession is something a seller gives up to reach a deal.
-
An incentive is a benefit offered upfront to attract interest.
In today’s market, some of the most common include:
-
Help with closing costs
-
Mortgage rate buy-downs
-
Price discounts
-
Appliance packages or upgrades
-
Home warranties
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Minor repairs
These extras help reduce your upfront expenses. As the National Association of Realtors (NAR) puts it:
“. . . they can help reduce the upfront costs associated with purchasing a home.”
🏗️ Builders Are Offering More
Because homes are taking longer to sell, many builders are increasing incentives. As Zonda says:
56% of to-be-built homes included incentives
74% of quick move-in homes offered them too
Although most aren’t cutting prices, many are open to negotiation. So, if you’re buying new construction, there’s a good chance you’ll get something extra.
🏘️ Resale Home Sellers Are Also Offering More
It’s not just builders. More existing homes are hitting the market. Because of this, competition among sellers has increased.
In March, 44% of existing-home sellers offered concessions. That number brings us back to pre-pandemic trends, showing the market is balancing again.
But concessions aren’t always about price. Often, sellers offer help with closing costs, handle repairs, or leave behind appliances. These extras can still add real value.
And with home prices up more than 57% over the last five years, sellers can still profit—while making the deal more appealing for buyers.
✅ Bottom Line
Whether you’re buying a new home or an older one, concessions and incentives can make a difference. They lower costs and give you more flexibility.
What would help you most? A lower interest rate? Covered closing costs? A move-in-ready kitchen?
Let’s connect to find out how I can help you find your perfect home with the best deal possible.
Discover Real Estate Opportunities in Milford, Orange, and Stratford
Hey there, neighbors and future home sellers or buyers in New Haven County, CT! I’m Wendy Barry, and today I’m excited to chat about the real estate scene in our beautiful area.
Your Insider’s Guide to the Current Market
Let’s jump into what’s happening locally in the real estate market. With mortgage rates hanging around 6.72%, the housing market is definitely on the move. We’re seeing fewer existing home sales than we’ve had in ages. But here’s the good news—new homes are popping up thanks to some nifty builder incentives. Great news for buyers on the hunt!
The Pricing Picture
Median home prices have settled at about $416,700, which is a nice breather. We’re expecting steady prices, which is great for buyers struggling with costs and also for sellers planning their next steps in this ever-changing market.
Plenty of Opportunities for Sellers
Thinking about selling? This might just be your moment in your local real estate market. With new builds on the upswing, places like Stratford and Milford are catching buyers’ eyes. Make sure your home stands out as the top choice for serious contenders.
Connecting More Than Just Houses
Being a real estate agent isn’t only about matching buyers with homes; it’s about building community connections. Whether you’re looking to sell or find a new nest in spots like Orange, getting in touch with us nudges you closer to your real estate dreams.
Stay in the Loop with Monthly Market Highlights
To take full advantage of these market conditions, keeping informed is key. Join our online Market Watch sessions for fresh insights and strategies to help you navigate CT’s lively market.
Need personalized advice or a chat about your property? Reach out anytime:
Mobile: 203-913-2923
Email: wendy@wbarryrealtor.com
Website: wbarryrealtor.com
Office Phone: 203-795-6000
Office Address: 236 Boston Post Rd., Orange, CT 06477
Collaborating with you on this exciting journey is about more than making deals; it’s about celebrating the communities we’re shaping together. Here’s to new adventures!
Thank you for trusting me with your real estate journey.
For further insights, feel free to check out the full articles on [CNBC](https://www.cnbc.com/real-estate/) and [Realtor.com](https://www.realtor.com/news/real-estate-news/).
