Single Women Are Single-Handedly Changing the Face of Today’s Home Buying Market

Higher education and salary levels are among several factors that are giving single women the power to purchase a home on their own.

There’s a powerful new force that’s changing the face of the home buying process and is reshaping the landscape of the housing industry. Curious?

Well, take our quick two-question quiz to discover the identity and some important insights into this savvy and skilled homebuyer.

1.) Read the homebuyer trends below. Then decide: What category of buyer best fits the profile? a.) Traditional Families   b.) Single Men   c.) Single Women   d.) Active Adults

Generally speaking, this buyer group typically:

…Buys in city over suburban areas.
…Is interested in amenities and features.
…Will not compromise on location or quality of neighborhood.
…Prefers condominiums with homeowner associations over single family homes.
…Prefers 2 or more bedrooms
…Smaller spaces are acceptable.
…Desires security and / or gated access.
…Likes to engage in social interaction with neighbors.
…Wants close proximity to stores, shopping and fitness centers.

If you guessed, c.) Single Women, you’re absolutely correct. Single women represent the fastest growing component of home buyers in the United States at almost 20%. According to the National Association of Realtors, single women were responsible for buying approximately one out of five homes purchased in the country – a total of 1.7 million homes. (By the way, these same ladies outnumbered the single guys who represented only 15% of the buying population.)

Interview with Pulte Mortgage Offers Some Light In Lending For Homebuyers

Phil Lukan of Pulte Mortgage offers some positive insights for today's buyers.

Despite all of the news about our nation’s financial systems, we bring you an interview with Phil Lukan, Pulte Mortgage’s local branch manager.

Buyers in today’s marketplace have a lot of concerns when it comes to purchasing a new home (selling their current residence, qualifying for a loan, etc.). As someone intimately familiar with home mortgages, the qualification process and credit markets in general, what’s your perception of the current credit situation and what would you anticipate seeing as improvements in the near- to short-term?

Phil: Certainly the news can be deceiving when looked at superficially. But there are indications that the credit markets may start to ease up, mainly as a result of the federal government’s recent moves to shore up the economy, financial institutions and other measures through the recent bailout packages. The Treasury just recently indicated the $125 billion that is going to 9 major U.S. banks will begin to be deposited early this week.  The hope is that the additional funds will allow banks to open their doors to lending again and that will continue to help unfreeze the credit markets.

We’ve heard that many buyers are finding it difficult to qualify now unless they have spectacular credit scores. Is there any truth to this and does Pulte have any plans in place to allow buyers to become prequalified or even special financing programs once they’ve met qualification guidelines?

Phil: Most Qualification guidelines have been significantly tightened and the credit score “bar” has certainly been raised for all buyers. We’ve seen an end to certain types of financing programs, such as reduced documentation programs (Stated Income, No-Doc) and many 100% financing programs. Debt-to-income ratio guidelines are more stringent and downpayment requirements have also tightened, especially in developing markets that still hold a high level of overall credit risk.  In Illinois, legislation was passed which now requires lenders to verify the borrower’s ability to make monthly mortgage payments, which means “reduced doc” loan programs are no longer a financing option.

One Result of the Mortgage Industry Bailout: Lower Interest Rates

There is one thing for sure that came from the federal government coming to the rescue of Fannie Mae and Freddie Mac -- a bit of much-needed market stability.

According to a story broadcast yesterday on National Public Radio’s Marketplace show, the federal government takeover of mortgage giants, Freddie Mac and Fannie Mae, has resulted in at least one short-term positive — a drop in mortgage rates, making it a lot more attractive to buy a house this week than it has been recently.

Since the announcement late Sunday, the rate on 30-year fixed mortgages dropped a half point on Monday and have been falling ever since. While no one knows for sure what the eventual long-term cost or outcome of the federal government’s decision will be, it seems that the concensus is that the move has given the market some well-sought stability, at least this week.