Hispanic Americans have historically been underrepresented as homeowners, and while they are making strides to close the gap, they now face mortgage rates above 4%.
A survey released by Realtor. com, in conjunction with the National Association of Hispanic Real Estate Professionals (NAHREP), found that 58 % of Hispanic American homebuyers are seeking buy their first home.
This is substantially higher than the general population, where first-time buyers represent the 34% of all homebuyers nationwide, according to the National Association of Realtors.
The survey also showed that homeownership can be seen as a way to build generational wealth, that many Latinos plan to pass a home on to their children, and that they are likely to consider the extended family in their home search process.
Realtor.com and HarrisX surveyed 1,002 Hispanic Americans online in January 2022 for their views on home buying and ownership.
However, buyers today will have to assume very high mortgage rates, according to data from Freddie Mac, which in its Primary Mortgage Market Survey (PMMS), revealed that the Fixed Rate Mortgage (FRM) at 30 years averaged 4.16%.
“The fixed-rate mortgage at 30 years exceeded 4% for the first time since May 2019,” said Sam Khater, chief economist at Freddie Mac. “The fact that the Fed is raising short-term rates and signaling further hikes means mortgage rates should continue to rise over the course of the year. While home purchase demand has moderated, it remains competitive due to low existing inventory, suggesting that high home price pressures will continue through the spring home buying season.”
Freddie Mac points out that:
The fixed-rate mortgage at 30 years averaged 4.17% with an average of 0.8 points for the week ending 17 March 2022, compared to last week when it averaged 3.85%. A year ago at this time, the FRM of 30 years averaged 3.09 percent.
The fixed-rate mortgage at 15 years averaged 3.39% with an average of 0.8 points , more than last week when it averaged 3.09%. A year ago at this time, the FRM of 15 years averaged 2.40%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.30% with an average of 0.2 points, more than last week when it averaged 2.97%. A year ago at this time, the 5-year ARM averaged 2.85 percent.
You can also interest:
– Mortgage rates in the United States are at a two-year high and are expected to rise further
– Price average US home is $392,000 dollars
– Buying a starter home is more affordable than renting in more than half of US metropolitan areas USA