Thanks to interest rates on standard 30-year mortgages sinking close to all-time lows, first-time homebuyers who have become desperate may finally be able to breathe a sigh of relief, Business Insider reports.
Many conditions of the current market mirror the conditions in 2012, when the record was set, which is leading many experts to believe a new record low may be coming.
For example, bond rates are falling. Mortgage rates are based on the seven-year bond yield, and rates are currently higher relative to this benchmark than historical norms. This means it is likely that mortgage rates will fall to close the gap between the two rates.
A major difference between now and 2012, and one that is benefiting younger, first-time buyers this time around, is that credit is easier to access now. In 2012, access to a mortgage was even more restricted than it is now. Only those with very good credit ratings were able to get a mortgage, meaning many younger people were left on the outside looking in.
Thanks to looser credit conditions and wage growth at a post-recession high, things are finally beginning to look a little better for young- first-time homebuyers.