There was a substantial increase in the home buying market in 2015, according to The Pending Home Sales Index by the National Association of Realtors. In fact, this continues a trend for the housing market as units have sold at the quickest rates since 2005. This boost in home buying is directly due to increased rent prices and more accessible and flexible mortgage lending rules.
Larger numbers of home buyers in the U.S. this year
One of the main reasons why home buying jumped in 2015 is that mortgage rates are lower than 4 percent. According to The Mortgage Reports, this has meant that the buying power of prospective home owners is much higher than it was at this time last year.
Supporting this fact is that rent costs have not only grown this year, but they are expected to continue to increase next year. The report found that this is why first-time buyers now account for more than 33 percent of all homes purchased, in addition to being a substantial portion of the pending home sales in 2015.
Mortgage loans are more accessible to first-time home buyers
One reason why first-time home buyers have entered the market in droves is also due to a surplus of low- and no-down payment mortgage loans. With the process of taking out mortgages becoming easier and more accessible, prospective homeowners are ready to buy.
As a result, home buying rates are expected to grow to more than 6 million in 2016.