Affordability and competition in the current housing market are the most worrying factors for otherwise confident consumers, but a recent survey indicates nearly third-quarters of prospective homebuyers really don't understand the mortgage process
In a recent survey conducted by JPMorgan Chase, 42% of self-identified prospective homebuyers said they weren't concerned about lacking understanding of what it takes to obtain a mortgage. But later in the survey, only 25% of respondents correctly answered a series of questions about how annual percentage rates work, down payments and lenders.
While 70% of respondents worry that
"Buyers are clearly concerned about housing inventory and rising prices, especially during the competitive spring buying season," Cecelia Barbieri, a senior vice president at Chase Mortgage, said in a press release. "But the research shows that interested buyers are optimistic and ready to act on their goals."
The survey also revealed that 32% of interested buyers want to take advantage of low rates, with 35% indicated that interest rates on 30-year fixed-rate loans rising above 4% would delay their decision to buy.
Three in 10 potential homebuyers indicated they're ready to purchase a home sometime in the next 18 months, with 20% attributing that sentiment to the rising cost of rent and a desire to upgrade from their current homes.