Updating a survey that was previously conducted in 2015, 2018, and 2023, Fannie Mae released the results of a consumer survey that uncovered opportunities to close knowledge gaps around mortgage qualifications and underscored the need to continue to improve education around the mortgage buying process.
While knowledge of the mortgage process is a mixed-bag amongst most consumers, Fannie Mae—and the industry at large—can help close that knowledge gap by making the mortgage process more intuitive through the process of leveraging underwriting innovations to make the dream of homeownership a reality.
Today’s housing market is challenging for homebuyers, but the desire to own a home remains strong
Fannie Mae says the biggest obstacle potential homeowners must overcome is housing affordability. These respondents cited high mortgage rates, high home prices, and unfavorable economic conditions and outlooks.
Currently, only 19% of respondents feel that now is a good time to buy a home, down from 62% in 2018.
On the other hand, 55% of respondents think it would be very or somewhat easy to obtain a mortgage due to a 28% increase in median household income, but those hopes are somewhat stymied due to a 53% increase in mortgage rates since the first survey was conducted in 2018.
Consumers still believe in the dream of homeownership
Ninety-two percent of all respondents said that owning a home is an important step in their lives—25% of consumers are actively considering buying a home in the next three years, 74% of consumers say they will buy a home the next time they move, and 21% of renters are working on preparing themselves financially for homeownership. Overall, 70% of all consumers believe buying a home is a safe investment.
Consumer knowledge of what it takes to qualify for a mortgage is mixed
Consumer knowledge of credit has steadily improved since Fannie Mae first conducted the survey in 2018 when 82% of people understood credit to a comprehension rate of 93% today.
Also, significantly more people are using credit monitoring services (25% in 2018 to 40% today). This figure may be skewed by the constant leaks of personal data from unscrupulous corporations who, in the aftermath of the leaks, are forced by the government to offer these services to affected consumers for free.
Knowledge gaps persist when navigating the mortgage process, creating extra hurdles to buying a home
The three major misconceptions consumers battle in the home buying process is the lack of self-confidence in navigating the mortgage process, overestimating minimum down payment figures, and overestimating required minimum credit scores.
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