Affordability constraints and a lack of awareness about low-down-payment mortgage options are tempering confidence about buying a home, according to data from the National Association of Realtors.
The NAR reported in the results of its third-quarter Housing Opportunities and Market Experience survey that 78% of homeowners and 60% of renters say now is a good time to buy. That's down from 80% and 62%, respectively, in the previous quarter.
Contributing to this decrease in confidence in part is the low levels of supply and rising prices, according to NAR chief economist Lawrence Yun.
"This summer's historically low mortgage rates injected some additional demand into the market, but the dearth of homes for sale continues to keep a lid on sales but not prices," Yun said in a news release Wednesday.
"Given the stiff competition and limited homes available at the lower end of the market, it's not surprising at all that those under the age of 34 and in the West are the least confident about it being a good time to buy."
But another factor leading many buyers — especially younger ones — to the decision not to buy make be a lack of knowledge about different mortgage financing options that are available, Yun said.
Across all age groups, fewer than 20% say that they would need just a 10% down payment to finance a home purchase. And 43% of those 65 and older and 37% of those below the age of 35 think a down payment above 20% is required. The average median down payment for first-time buyers, according to the NAR's Profile of Home Buyers and Sellers, is 5%.
There are conventional programs available that will lend to consumers with as
Instead, more of those folks who are looking to move from renting to homeownership are
