Is Remodeling the New Relocating?

by | Sep 14, 2018 | Mid America Mortgage, Inc, Mortgage Lending, Real Estate Market |

Is Remodeling the New Relocating?

What’s Fueling the Home Improvement Craze?

All of these factors have caused homeowners to turn to remodeling as an alternative to moving.

Equity Refinances Surge Despite Higher Mortgage Interest Rates

A sizeable percentage of homeowners are getting cash-out refinancing.2

Cash-out Refis in 2018 (projected): 40% of refinances - Cash-out Refis in 2012: 10% of refinances
Millennials haven't killed hombuying. In fact, they might just be saving it!

First-Time Homebuyers Outnumber Repeat Buyers3

Homebuyer chart showing first-time buyers exceeding repeat buyers.

Loans to Millennials4

Purchases made up 90% of closed loans. Refinances were only 8% of all closed home loans.

in July 2018

Divider Graphic

Single millennials make up nearly half the population

of homebuyers born 1980-1999.4

Millennials: 48% single, 51% married

Single Millennial HomebuyersAverage amount borrowed: $172,904. Men 53%, Women 40%. Average FICO Score: 720.The cost of home purchasing for first-time buyers is expected to continue to rise as fewer homeowners sell “starter homes” and new construction fails to keep pace with housing demand.3
Dots Graphic

Working together, we can reach the millennial market and help turn more renters into first-time buyers.
Sources:
[1] BuildFax, Housing Health Report, July 2018.
[2] CoreLogic, a data and analytics company, The MarketPulse Report, August 2018.
[3] eMBS, Federal Housing Administration, and Urban Wire, August 2018.
[4] Ellie Mae® Millennial Tracker, September 2018.

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