TD Bank's 3rd annual Mortgage Service Index seems to indicate that consumer interest in buying a home is on the rise. 30% of the 1,456 participants felt that now is a good time to buy a home and 29% said that they plan to make the move sometime this year. This is a significant increase as compared to the 20% of respondents that felt the same way in last year’s survey.
In a previous blog I had discussed the fact that Millennials may play an important role in the housing market this year. This appears to be coming to fruition as 50% of the Millennials that took part in the survey stated that they definitely plan to buy a home of their own within the next year and 1/3 of them also considered now to be an opportune time for buyers.
It should be noted that many home shoppers (51%) still feel that lenders are not doing an adequate job of educating consumers online as to the many different types of home loans available and what options may be the best choice for them. 49% felt that loan officers should be better trained as well. 40% of all respondents would also like to see more workshops and seminars about home financing options offered by lenders. I speak from experience when I say that today’s home buyer is more knowledgeable than ever before and 86% of those surveyed were confident that they are able to educate themselves enough to be able to make the right decisions.
I found it interesting that although most people surveyed felt that the lenders were not educating consumers adequately, only 28% of those surveyed are actually using some type of mortgage affordability program. As a result it is possible that many potential homebuyers may be missing the opportunity to finally purchase a home of their own.
All things considered I feel that the results of the survey are quite positive and seem to indicate a very good year for the housing market.