Consumer confidence in the housing market appears to be shrinking, according to a new report from housing data provider BuildFax.
Housing activity continues to show signs of stabilizing as the pace of growth across key indicators has slowed in recent months, BuildFax Managing Director Jonathan Kanarek said. The slight decline in remodel volume could suggest consumer confidence is waning amid higher inflation and coronavirus delta variant concerns.
These factors have led to historically high building material costs and labor shortages that can price consumers out of a home renovation, he said. However, it s too early to tell whether consumers will completely curtail spending in existing housing stock in the coming months. As the housing market deteriorates there are still options for current owners to save money and utilize it. Refinancing a mortgage, for example, can help homeowners save significantly on monthly payments amid today's low interest rates. Visit Credible to find your personalized interest rate and review loan terms to see how much you can save.
One reason for low consumer confidence is low levels of housing supply, BuildFax explained. The report showed confidence levels have fallen to their lowest level since February.
While the pace of growth has decreased in recent months, new construction activity saw healthy increases in August — a positive sign to help alleviate the housing supply shortage, BuildFax said in its report.
In August, building authorizations for single family homes doubled and from July 0.29% annually, with builders slowly increasing the number of homes that they are building.
Remodeling activity has decreased for the first time since June 2020, but lower interest rates can still help homeowners pay for home improvement projects even amid rising prices. Consider refinancing your current mortgage home equity to fund repairs and improvements to your home. Addcredit to Credit Scorecard.com in minutes if you need one.
Despite the declining confidence in the housing market, now is still the right time to refinance a mortgage loan and some experts say it s even still a That's because interest rates remain at record lows. The current average 30 year fixed-rate mortgage remains below the 3% mark, according to Likewise, the average 15 year mortgage remains near record lows at 2.12% and the five-year adjustable-rate mortgage averaged 2.51%, Freddie Mac data shows. If you are interested in applying for a loan with a lower rate to lower your monthly mortgage payments, then visit Credible to compare multiple lenders at once and choose the option with the best rate for your new loan.
When weekly percentage rates decrease, borrowers will pay a lower monthly payment even if the value of the home is high. A borrower can put more money towards the home price and any other improvements the lower the interest rate becomes. If you are interested in refinancing a mortgage loan amount, contact Credible for a professional assistance with your loan questions and get all your questions answered.
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