The winter market for real estate was down significantly, as a result, the mortgage market took a hit as well. In this edition of Your Home, Solomon Syed has more.
"Basically the refinance market has gone and passed. There's not a lot of people refinancing right now and it's had an effect on the market. And the real estate market typically doesn't do that well during the winter months and we've have a tough winter. So the mortgage market definitely fell. The first quarter was off significantly due to those two reasons," said Jim Cardinal, Syracuse Securities Mortgage Professional.
While that may be bad news for mortgage brokers and banks, that may be good news for anyone looking to purchase a home right now.
"With the market shrinking and less mortgage business out there, banks are trying to come up with other products to entice people to purchase. Slowly but surely banks are coming out with different types of products and different types of offerings that are going to expand the market. And, frankly, we need that. That's a good thing for the market. Other options aside from FHA for low down payment programs, which is significant. It's not coming out extremely quick, but there are programs that are going to help people get into houses," said Cardinal.
Thinking of buying a home this spring or even into the summer or fall? There is one thing you should do before anything else.
"If someone is considering buying a house, even if they're thinking it's 3-6 months out, it's certainly never too early to start getting prequalified to know exactly what kind of range of house you're looking for," Cardinal added.
And, when you do look to get qualified, make sure you apply to a few different places.
"A lot of times people start out with their credit union or their bank that they belong to. It makes sense to call a couple different places just to see what programs are out there and how much someone is going to qualify you for. You don't want to go to a million places, but a couple of places to find out what options you have," said Cardinal.
With mortgages rates expected to continue to rise this year as the fed continues to scale back their purchase of mortgage backed securities, now may be the time to start getting more serious about buying a home if you're on the fence.