64% of First-Time Buyers Intimidated; 58% Turn to Realtors®

The housing market can be challenging for first-time homebuyers who must prioritize affordability, and 62% of prospective first-time buyers said they would actively start house hunting if mortgage rates dropped to a more affordable level, according to a survey by BPG Inspections. 

What’s “more affordable”? The survey revealed that, on average, the maximum rate first-time buyers can afford is 4.86% for a 30-year fixed mortgage. 

Affordability remains a great concern among this group of buyers, and 83% said they didn’t yet own a home due to affordability. Eighty percent said they were worried about taking on a mortgage they couldn’t afford, and specific financial concerns included: 

1. Monthly payments (50%) 
2. Down payments (32%) 
3. Maintenance/repairs (11%)
4. Property taxes (7%) 

To counteract affordability worries, 34% said they would consider a 50-year mortgage to reduce their monthly payments. 

Although many first-time homebuyers feel hopeless or overwhelmed about buying a home (56%) and intimidated by the process (64%), the survey found that the majority have trusted sources for homebuying advice. These include: 

1. Friends and family (61%) 
2. Realtors® (58%) 
3. Online research (48%) 

Through these sources, first-time homebuyers can navigate their top homebuying concerns – price negotiation (38%), paperwork and documentation (25%) and choosing a lender (15%).