Tis the Season of Giving

It’s no secret this year has been challenging for lenders, to say the least. As we know, most of the US population is feeling the effects of inflation and the continuous rise in the cost of living. The national median of existing-home price for single-family homes climbed 2.2% to $406,900, year over year, in Q3. From groceries to heating bills, American consumers are shelling out more for almost everything these days.

However, I’m hopeful we’re turning a new leaf. With October's inflation numbers, the Fed has recently paused interest rate hikes following 11 increases over the past 18 months. Shelter remained the most significant single contributor to October’s inflation reading, with food prices up and energy costs posting their first decline after two months of significant gains. ?

On another high note, first-time home buyers have made a comeback over the last year; the National Association of Realtors (NAR) recent survey found first-time buyers?made up?32% of homebuyers, up from last year's 26%. This increase is still below the 38% average seen since 1981. The report notes that most first-time buyers made?financial sacrifices?to purchase a home and that buyers continue to?see buying?a home as an excellent financial investment,?82%?in fact. 38% of first-time homebuyers found saving for the down payment to be the most difficult step in the home-buying process.

Click n’ Close has actively contributed to buyers' success. Through our down payment assistance (DPA) product suite, SmartBuy, we’ve been fortunate enough to assist more than 4,000 borrowers and counting, with an average of?nearly $10,000 in assistance?per transaction.?SmartBuy?has no?income limits and innovative features, such as a?repayable option?with a 30-year amortization, a?2-1 buydown?and options for?manufactured homes. Not to mention, we are privately funded; in other words, we are a reliable source of DPA financing regardless of what time of year it is.

A little assistance can go a long way, especially for today’s homebuyers. If you want to strengthen your product offerings and help more borrowers succeed, please contact me at [email protected].