The millennials comprise the majority of first-time homebuyers in the real estate market. While it has been predicted that a lot of millennials will be making their first real estate purchase this year, a new survey shows that first-time buyers are holding off on their plans to purchase a new house.
Potential homebuyers, particularly the first-time buyers, are found to be holding off on their plans to purchase a new home this year, reports Realtor.com. According to the publication, these potential homebuyers are doing so because they are hoping to improve their credit scores in order to get lower mortgage rates.
As previously discussed here on Realty Today, an applicant's credit score would greatly determine the mortgage rates that would be applied on his or her application. A higher credit score would mean lower mortgage rates while a poor credit would result in higher payments.
The aforementioned publication further notes that one in five potential homebuyers have decided to put their plans to buy a home this year on hold. While this seems like a bad sign for the real estate market, the good news is that these potential homebuyers are already doing the necessary steps to get better credit scores.
Almost 70 percent of those who participated in the survey conducted by Edelman Berland for Experian said that they were paying their bills on time while 60 percent said that they are paying off their debts. This could mean that once these potential homebuyers are satisfied with their credit scores and have already paid their debts, then more buyers would start flocking the real estate market.
Other key findings from the survey also revealed that 35 percent of the participants were not aware of the steps they had to take to qualify for a larger loan. This may prompt agents into disseminating awareness about the home buying process through various means online or in print in order to attract more buyers in the market.
