Traditional lenders are transforming, adopting cutting-edge technology to stand apart from competitors and introduce an added level of security to financing. From AI-run algorithms to smart contracts, obtaining a mortgage could soon be a vastly different process than buyers experienced just 10 years ago. Industry disruptors, however, are looking to shift from the traditional model completely, threatening to take over the role typically performed by bank intermediaries, which buyers are accustomed to.
A bigger piece of the pie.
The average homeowner is forking over 17.1 percent of their income for their mortgage, an allocation that has grown from 15.9 percent in 2017, according to a recent report by Zillow. The increase is the second-most significant since the recession. Why the jump?
For the fourth time in five weeks, mortgage rates have settled, with the average 30-year, fixed mortgage at 4.55 percent, a decline from 4.57 percent the prior week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®).
The average 15-year, fixed mortgage was at a 4.04 percent rate, flat from the prior week, but the average five-year, Treasury-indexed hybrid adjustable mortgage was at a 3.87 percent rate, up from 3.83 percent the prior week.
Baby boomers are the biggest generation of homebuyers behind millennials, at 32 percent, according to the National Association of REALTORS® (NAR) 2018 Profile of Home Buyer and Seller Generational Trends.
For more information, please visit www.nar.realtor.
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