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Over a month after we all sat down and tried to improve our lives through our New Year’s resolutions, here is one that came up this year that is a little disheartening. Hopefully, this is a resolution that will not be kept.
According to a Debt.com report, buying a home is not at the top of the ‘to do’ list for many in 2018. In fact, only a little more than 10% of those surveyed listed it as a 2018 priority. That doesn’t sound so good for lenders.
According to the survey, the priorities listed for 2018 included:
- Payoff credit cards / 70%
- Saving money / 66%
- Spending less / 48%
- Stop credit card use / 30%
- Start investing / 15%
- Payoff student loans / 12.5%
- Buy a car / 12%
- Buy a home / 11%
According to the survey, a consumer’s biggest concern is with their credit score. Credit score damage is their chief regret as this will impede just about all financial transactions and impact potential job opportunities.
Interestingly, credit scores and their importance have received much attention in the press, TV, radio, and social media. Consumers have become very aware of the importance of a good credit score and of the safety and security of their credit information. This seems to have influenced their thinking in 2018.
It looks as though lenders and realtors need to do a little more work in making consumers aware of the benefits of homeownership. With an improved credit score, reduced debt, and more savings, consumers will be in a much better position to buy a home.
This is just another stumbling block thrown in the way of mortgage lenders in the new year. But, you know what they say (whoever they are), the only difference between stumbling blocks and stepping stones is how we use them.
Consumer’s current efforts to improve their financial position may create some challenges for lenders today. But, they may create better homebuyers of tomorrow.
The study also found that more than half of the people surveyed skipped a question about meeting past financial goals. Among those who did answer the question, more than 63% said they had not met their goals.
Maybe, most people just don’t do a good job at sticking to those New Year resolutions. Hopefully, “not buying a new home in 2018” will be a resolution that they do break!
