Buyers Will Spend More, But Probably Be Stressed Out

Keith Griffin

Aug 19, 2020

How much home buyers will go over budget chart

Originators take note: you might be able to convince your clients to take out bigger mortgages. A new survey shows almost two-thirds of Americans are willing to spend more for their dream home. A significant number, though, find the whole process stressful.

A Lending Tree study says more than 6 in 10 (64%) homebuyers are willing to go over budget for their perfect house.

This sentiment is especially true for millennials, as more than 3 out of 4 (76%) of respondents ages 24 to 39 said they’d stretch their budget to buy their dream home. Seventy-four percent of men agreed.

“I urge homebuyers to be very cautious about going over budget. Many people underestimate the maintenance costs of owning a home,” said Tendayi Kapfidze, LendingTree’s chief economist. “If you are stretched financially and underinvest in maintenance, it can diminish the value of your home.”

Originators should also note how stressful certain groups are about securing their mortgages. Black and Hispanic homebuyers were about twice as likely, at 16% and 18%, respectively, as white buyers (9%) to say applying for a mortgage is the most stressful part of the homebuying process.

More than 1 in 10 (12%) buyers said that they didn’t feel their mortgage lender was effective at explaining their available loan options.

Link copied

Published

Aug 19, 2020

Analysis and Data

Existing-Home Sales Dip in August, Yet Home Prices Surge

As existing-home sales dip further, median prices rise unabated.

Existing-home sales declined 0.7% in August to a seasonally adjusted annual rate of 4.04 million units, according to the National Association of Realtors. Down 15.3% from one year ago, this is the fourth consecutive month of sales declines.    The median exis...

Analysis and Data

Home Flipping Sees Profit Rebound in Q2, Despite Decreased Activity

ATTOM report indicates an uptick in investor ROI amid broader housing market rebound; all-cash purchases on the decline as loan-backed buying shows promise.

Home flipping activity decreased in the second quarter of 2023, but profits and profit margins for investors both showed more signs of recovering from a slump that had slashed them by more than half in just two years, according to a new report from ATTOM. The report found t...

Dec

Irvine, CA

More from

Industry News

CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Industry News

Sep 19, 2023

Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Industry News

Sep 18, 2023

FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Industry News

Sep 11, 2023

Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Industry News

Sep 11, 2023

If You Build It, They Will Come

Ratings will go a long way toward growing the market for home equity-backed securities