NEW YORK, May 29, 2014 /PRNewswire/ -- Today, RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) released the results from of a survey: Home Lending: Today's Customer. The data shows how consumers are thinking about home buying, whether they're looking to buy their first property or turnaround their current home, what their priorities are in finding a home and a lender and what interest rates they expect to pay.
The survey found that a lot of people are happy in their current homes and the majority of those that don't currently own are not looking to buy a home and their current finances are why:
- 81% of current home-owners have no plans at this time to purchase a different home.
- Non-home owners consistently listed financial instability as a contributing factor for not buying a home regardless of their household income (HHI):
- 24% with an annual HHI over $150,000
- 38% with an annual HHI between $100,000 and $149,999
- 28% with an annual HHI between $50,000 and $99,999
- 32% with an annual HHI between $25,000 and $49,999
- 31% with an annual HHI between $0 and $24,999
"Interestingly, the survey found that a quarter of potential homebuyers just don't feel financially stable enough to commit to a house and it didn't matter how much money they made," reported Debra Borchardt, Markets Analyst for TheStreet. "It's understandable that someone making less than $25,000 a year doesn't feel like they can afford a home, but it's shocking that someone who makes over $150,000 a year feels equally poor. Higher home prices could be a good reason why with homes hitting record high prices and inventories hitting a low."
The survey also revealed differences between how men and women handle their loans, financing, and home buying process:
- Men are more likely than women to have their current home paid off, with 31% of men carrying no loan on their home and only 21% of women carrying no loan on their home.
- Men are significantly more likely than women to be aware of refinancing options, but not take advantage of them, with 47% of men choosing not to refinance versus only 35% of women.
- When beginning the home buying process, women are more likely to look up their credit score first, contact a realtor, then find a house they would like to buy, whereas men are more likely to find a house they would like to purchase, search for rates, and then contact a realtor.
- When selecting a lender, respondents said that the most important factor was rate, followed by monthly payment amount and term length. The type of institution (bank vs. credit union) was least important.
- 4% to less than 5% was the most common maximum interest rate that respondents would be willing to pay on a 30 year fixed rate mortgage.