2023 Homeownership and Consumer Outlook
At UW Credit Union, we’re here to help everyone achieve their homeownership dreams. Here’s a synopsis of market conditions, along with tips to help buyers reach their goals with confidence.
Reaction to rising rates
Fannie Mae reports that most Americans feel now is a good time to sell a home. Here are highlights from the most-recent Home Purchase Sentiment Index:
- 18% of Americans say it’s a good time to buy
- 66% of Americans say it’s a good time to sell
- 46% of Americans think mortgage rates will increase in the next 12 months
- 78% of Americans are not concerned about losing their job
- 22% of Americans say their household income is significantly higher than 12 months ago
- 41% of Americans believe home prices will go up in the next 12 months
What we know about the market
Demand for homes remains high. With more millennials reaching prime buying years and many Americans enjoying job security, there is more motivation to buy than in years past but fewer overall homes on the market.
Refinancing falls in popularity. With increased rates, mortgage refinancing is no longer an attractive option for most homeowners.
Leveraging home equity an increasingly popular option. Many homeowners are taking advantage of cash-out refinancing and home equity loans to do everything from paying off higher-interest debt to making larger home improvements.
Help with a successful home search
At UW Credit Union, we understand that buying a home can seem like a complicated process – whether it’s your first home purchase or your fifth. Our local mortgage loan officers help ease the experience:
- “I emphasize the long-term benefit of homeownership and building equity. Rent builds no equity and increases 10% year by year. At UWCU we always work and prioritize members’ budget and comfort level so no matter what the rate is, members always will have the monthly mortgage payment that fits in their lifestyle and financial situation.”
Rina Courtier, 10 years’ experience - “I can help a buyer by learning what their budget will allow for a monthly payment, and then coaching them on where their price limits and flexibilities may be. By doing so (and having that information communicated to their Buyer’s Agent), they can be confident and prepared when going into competitive buying situations without the risk of unknowingly overextending themselves financially.”
Rick McKinley, 20+ years’ experience - “My primary concern when working with a buyer is always to help them understand their options and stay within a budget that they are comfortable with so that they’re in a good financial position as they enter homeownership.”
Cory Poole, Madison, 20+ years’ experience - “I advise buyers to be flexible. It’s best to not focus on the dream home for now. Focus on finding a home and know you may have to compromise some of the criteria that you are looking for. Also, it’s key to find a Realtor that is highly skilled and understands the market conditions. They are in your corner and will negotiate for your best interest.”
Anna Wise, 10 years’ experience - “In today’s market, it’s crucial to communicate with your lender and your realtor about what you are willing and/or able to do to make your Offer to Purchase as strong as possible. From the lending perspective, that means exploring all the loan options and choosing what best fits the scenario. Working together as a team with their realtor, I do my best to give borrowers as much buying power as possible so they can put their best foot forward and write a strong offer on their new home.”
Brad Sailing, 20+ years’ experience - “I encourage buyers to get pre-approved for a mortgage right away, prior to their home search. Through the pre-approval process I can offer detailed information about the mortgage process, interest rates, costs, and options available to them. I try to help buyers understand their financial commitments and provide peace of mind about their budget.”
Troy Magestro, 20+ years’ experience
Why choose UW Credit Union?
We are one of Wisconsin’s top mortgage lenders with decades of experience helping people become homeowners. We offer:
- Local Mortgage Loan Officers in branches
- Online applications and easy rate quotes
- A wide variety of home loan products and competitive rates
- ITIN lending
- Free first-time homebuyer seminars
- Stackable offers to take advantage of multiple discounts, including up to $1,2501,2 off for first-time buyers and up to $7502,3 off for experienced buyers
- Expanded lending territory (we’re now in Minnesota and Illinois, too)
Call 800-533-6773, ext. 2810, to reach the UW Credit Union Mortgage Loan Department.
1UW Credit Union closing cost credit is variable and may be up to $1,000. Credit will be calculated on actual cost, excluding owner’s title and transfer tax fees, and will be reflected on the Closing Disclosure (CD). Offer valid for purchase transactions only; refinances do not qualify. Offer valid for first-time buyers only. An individual is to be considered a first-time home buyer who (1) is purchasing a property; (2) will reside in the property as a principal residence; and (3) has had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the property. The discount will be applied at closing as a lender credit and reflected on the CD. This offer excludes VA, FHA, WHEDA, lot, construction, investment property and Rapid Refinance loans. Offer valid for first mortgages only. Offer is subject to credit approval and underwriting and is subject to change without notice. Mortgage insurance is required for transactions over 80% LTV. This offer requires an established UW Credit Union checking account. Offer may be combined with $250 closing cost credit for Premium Checking for a maximum credit of $1,250, but may not be combined with any other offers. No other discounts apply. Actual closing cost credit may be limited as the combined total of seller credits and lender credits cannot exceed the actual amount of closing costs, prepaid interest, and escrow reserves; please review the allowable credits for your specific transaction with your loan officer. Contact us for details.
2Membership requirements apply. Member must have a UW Credit Union Premium checking account opened at least 20 days prior to closing date to receive up to a $250 closing credit, which will appear as a credit on the final Closing Disclosure. Credit will be calculated on actual cost, excluding owner’s title and transfer tax fees, and will be reflected on the Closing Disclosure (CD). Offer subject to change and without notice. Offer may be combined with First-Time Homebuyer Discount for a maximum credit of $1,250, or it may be combined with $500 Closing Cost Credit for a maximum credit of $750, but may not be combined with any other offers. Offer is not available for the following loan types: lot, construction, WHEDA, FHA, VA, and Rapid Refinance. Contact us for details.
3Membership requirements apply. Offer valid on home purchase and refinance loan closings. Credit of up to $500 will be calculated on actual cost, excluding owner’s title and transfer tax fees, and will be reflected on the Closing Disclosure (CD). The credit will be applied at closing as a lender credit and reflected on the CD. Offer valid for both purchase and refinance transactions. Offer excludes VA, FHA, WHEDA, lot, construction, and Rapid Refinance loans. Offer is subject to credit approval and underwriting and is subject to change without notice. Mortgage insurance is required for transactions over 80% LTV. This offer requires an established UW Credit Union checking account. Offer may be combined with $250 Closing Cost Credit offer for Premium Checking accountholders for a maximum credit of $750, but may not be combined with any other offers. Actual closing cost credit may be limited as the combined total of seller credits and lender credits cannot exceed the actual amount of closing costs, prepaid interest, and escrow reserves; please review the allowable credits for your specific transaction with your loan officer. Contact us for details.