Navicore Solutions prepares for an increased demand for pre-purchase housing counseling among first-time home buyers following speculation of decreasing interest rates
8/19/2024
MANALAPAN, N.J., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Prospective first-time home buyers are dealing with a triple punch of low inventory, increasing property values, and a current average mortgage 30-year fixed rate of 7.41%. Current homeowners are staying put in the homes they refinanced during the pandemic when interest rates were as low as 3%, leading to the lower availability of homes for purchase. That coupled with the higher interest rates of today are making monthly mortgage payments more difficult to afford.
However, there may be some relief on the horizon. The increase in the July unemployment rate, announced on Friday, August 2, from 4.1% to 4.3% caused the stock market to wobble on the following Monday. Given this weakening of the job market and the recent decrease to 2.89% of the inflation rate, there is broad speculation that the Federal Reserve will lower interest rates at their September Federal Open Market Committee (FOMC) meeting. A reduction in this rate will have implications for both inflation and mortgage rates.
What does all of this mean for new homebuyers who have been feeling frozen out of the housing market in recent years? It may mean that owning a home is more attainable than it has been in the last few years for first-time buyers. In turn, leading to an increased demand for pre-purchase housing counseling to meet the needs of those new to the rigors of entering into a mortgage agreement.
Navicore Solutions is ready to meet this increased need and is approved by the U.S. Department of Housing & Urban Development (HUD) to provide housing counseling services. Certified housing counseling services enable consumers to make informed and reasonable decisions to achieve their housing goals. Pre-purchase housing counseling establishes a link to sustainable homeownership. This type of counseling helps clients become educated in the process of planning for and buying a home.
The HUD First-Time Homebuyer Education and Counseling Demonstration report indicates some positive impacts, including higher average credit scores for younger adults (29 years old and younger) and women, increased confidence in the ability of potential homebuyers to find information, decreased credit card debt and increased savings and investments for treatment group members.
The pre-purchase curriculum covers financial management, evaluating credit information, pre-qualifying & loan approval, financing options, shopping for a home, finalizing the loan, the closing process, maintaining the home, avoiding foreclosure and predatory lending practices.
Consumers receive a certificate upon completion of the program. Successful completion of the program may be used to qualify for applicable homeowners’ assistance programs and is ideally performed before the purchase contract is signed.
As Navicore Solutions anticipates an uptick in demand for pre-purchase housing counseling, they stand prepared to empower first-time homebuyers with the knowledge and tools needed to navigate the complexities of today’s housing market. With their HUD-approved curriculum, prospective homeowners can gain critical insights into the entire home-buying process, from financial management to understanding mortgage options and avoiding predatory lending. In an environment where market conditions are shifting, and interest rates may soon decline, Navicore's services will be instrumental in helping clients make informed, sustainable decisions, ultimately contributing to more confident and financially secure homeowners.
About Navicore Solutions
Founded in 1991, Navicore Solutions is a national leader in the field of nonprofit financial counseling with a mission to strengthen the well-being of individuals and families through education, guidance, advocacy, and support.
Navicore counselors provide a wide range of services including credit counseling to consumers in need; education programs through workshops, courses and written material; debt management plan to provide relief for applicable consumers; student loan counseling for those struggling with student loan debt; and housing counseling services in the areas of rental, pre-purchase, default and reverse mortgage. The agency is an advocate of financial education helping communities achieve and maintain financial stability.
Contact:
Lori Stratford
Digital Marketing Manager
Navicore Solutions
lstratford@navicoresolutions.org
navicoresolutions.org