May 6, 2021 | Market Update

Market News 5-7-2021

Mortgage Market Update

First-time Homebuyer Tax Credit

Recent legislation seeks to bolster homeownership for low to middle-income earners. The newly introduced “First Time Homebuyer Act” could provide a tax credit of up to 10% of the home purchase price, or $15,000, to those who qualify. The credit benefits potential buyers who have not owned or purchased a home in the past three years.2

Home Buying Timeline

The process of buying a house generally takes a minimum of two months. However, buyers can speed up the process by collecting financial documents in advance and collaborating with their realtor to address potential problems with appraisal or inspection.3

Coming Supply Could Calm Frenzy

Nearly 10% of homeowners plan to put their property on the market this year. Typically, the figure is only 8%. That wave of extra supply could help quiet a fevered housing market. As a result, economists expect purchase mortgage originations to climb more than 16% in 2021.4

“Walk-and-Talk” Inspections Gain Popularity

To increase confidence and gain a competitive edge, some buyers choose “walk-and-talk” inspections. These “mini inspections” often lack the details necessary to evaluate the property thoroughly but offer borrowers the confidence they need to make an offer on the spot, free of an inspection contingency.5