A recent survey from the government-sponsored enterprise Fannie Mae, found that 85 percent of Americans still prefer homeownership over renting. This overwhelming attitude, though, is paired with the realization that certain demographics including an individual's income, age or employment status are still driving factors in his or her final decision.
Steve Deggendorf, one of the authors of the study told Housingwire that what really drives consumers falls into one of those attitudinal categories, and will often be an emotional experience, including objective and subjective beliefs.
"People are thinking about this process (of buying a home) as being very deliberate, but with most people it is complex," Deggendorf said.
The report also showed that for 40 percent of Americans who already have a mortgage, attitudes about finances – affordability, ease of getting a mortgage, homeownership benefits – will heavily drive their decision over whether or not they will rent their next property.
When it comes to individuals who are currently renters, though, 42 percent said that issues including good or bad market timing, underwater status and whether renting or owning makes more sense will impact their decision.
According to the Wall Street Journal, single-family home prices are rising, which points to an improving housing market. In addition, the Joint Center for Housing Studies at Harvard University found that those houses were at their lowest level in 49 years, back in March.
With a steadily improving housing market, lenders should consider investing in mortgage loan software, to help create an accurate repayment plan for each individual borrower. Prices may be at the best level in years, and individuals might be feeling especially confident, but it is still wise to use an amortization calculator to ensure that all borrowers can adequately stay on top of an assigned mortgage.