Latest news with #MattVernon
Forbes
3 days ago
- Business
- Forbes
Housing Market Uncertainty Reaches 3-Year High, BofA Report Finds
Homeowners and buyers are cautiously optimistic. getty Both homeowners and prospective buyers find the current housing market unpredictable. In fact, 60% of both groups don't know if this is a good time to buy a house, according to a new Bank of America report, which notes this is a 3-year high. However, 52% of those looking for a new home express optimism, and believe the housing market is better than it was last year. Matt Vernon, head of consumer lending at Bank of America, provides insight from the report. According to the report, 60% of homeowners and prospective buyers can't tell whether it's a good time to buy a house of not. This is up 3 percentage points from 2024, and 12 percentage points from 2023. However, the majority of prospective buyers are optimistic. In fact, 75% expect both prices and interest rates to fall, and they're waiting until then to purchase a new home. This is compared to 67% who felt this way in 2024, and 62% who held this view in 2023. 'Housing affordability is definitely a concern, but I think both housing experts and prospective homebuyers see things heading in the right direction,' Vernon says. While the market still needs to improve, he says the report shows that buyers are still optimistic, and believe things are better now than they were a year ago. 'As new market data emerges, we're seeing more inventory (although delistings have also increased) and a slight cooling in price growth, which could give buyers more breathing room,' Vernon explains. 'So, while it's still a tough market, there's a sense that the tide might be starting to turn.' In spite of any financial obstacles, Gen Z is committed to homeownership – as well as the sacrifices that may be necessary to achieve this goal. In fact, 30% of Gen Z homeowners said they took an extra job to get the money for a down payment. This is up from 28% in 2024, and 24% in 2023. Some Gen Z homeowners are also open to living with other people in order to reach their homeownership goal. In fact, 22% of Gen Z homeowners reported that they purchased their home with siblings, compared to 12% in 2024, and 4% in 2023. The report also found that 34% of Gen Z prospective homebuyers would consider living with family or friends while waiting to purchase a home. This generation is also open to receiving help to purchase a home. The report reveals that 21% of Gen Z prospective homebuyers plan to get a loan from parents or other family members for the down payment, compared to just 15% of the general population who say the same. Among all prospective homebuyers, this number is up from 12% in 2024 and 9% in 2023. Last year, weather-related home losses reached record levels This increase in severe weather events did not go unnoticed by homeowners and prospective buyers. The report reveals that 62% of both groups are concerned about the impact of severe weather and natural disasters as it relates to homeownership. Also, 73% believe it's important to purchase in areas with a lower risk of these events occurring. The report reveals that 38% of survey respondents have changed the location of their preferred home purchasing location based on that area's risk of severe weather. Also, 23% of current homeowners say they have experienced property damage or loss in the last 5 years. due to severe weather events, and 65% of current homeowners report taking measures to prepare their home for the risk of severe weather. If you plan to purchase a home, Vernon recommends that you start preparing early—even if you're not ready yet. 'This market can be unpredictable, but the more prepared you are, the more confident you'll feel when the right opportunity comes along,' he says. So, what does this entail? 'Get a handle on your credit, build a savings cushion, and understand what you can realistically afford,' Vernon suggests. In addition, he says you shouldn't underestimate the power of getting preapproved, as it can make a huge difference when you're ready to make an offer. 'A lot of buyers right now are waiting for rates or prices to come down, but in the meantime, use this time to strengthen your financial foundation so you're ready to act when the timing feels right,' Vernon concludes. If you're a homeowner, check out these 5 home renovation trends in a sell'ers market. Read the full Bank of America 2025 Homebuyer Insights Report here.
Yahoo
3 days ago
- Business
- Yahoo
This is an 'opportunistic' housing market
The housing market has been hit by high mortgage rates and low inventory, creating confusion for consumers who want to know whether or not now is the time to buy. In the video above, Bank of America head of consumer lending Matt Vernon shares the results of the latest Bank of America Homebuyer Insights Report and explains why, for some buyers, it could be an "opportunistic" market. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Housing market uncertainty. It is at a three-year high, according to the Bank of America Home Buyer Inside Report. 60% of home buyers and home owners can't tell whether now is a good or bad time to buy a new home. For more, I want to bring in Matt Vernon, Bank of America head of consumer lending. Matt, good to have you here with us. Just take us into this survey. It was conducted back in March and April. Do you think that uncertainty remains high? Hey, I think our respondent and Brad, good to see you. I think our respondents have have told us very clearly that they are a little bit confused right now and uncertain on whether it is a good time to buy with all of the different factors that are occurring from home prices and rates and volatility in the market. That said, 52% of our respondents are actually more optimistic that the housing market is heading in the right direction, up from a year year ago at less than 45%. So the movement is there. And then importantly, 75% of our respondents are absolutely interested in buying a home and they're ready to act as soon as they see some signs that rates are coming down or prices are coming down. They're going to jump right in and be very optimistic. And so, do you think this will affect the current home buying season, the sentiment, at least as evidenced through the survey data? Yeah, I think certainly we're off to a bit of a slower start. All the data shows that than we've traditionally seen in the spring market. That being said, the word opportunistic is probably the word of the day, right? Because folks are waiting for something to incentiv them to get back into the market. So right now, if we were to see rates come down like we've seen, and go up by the way, over the last, call it four months, when it comes down, I would expect folks that have prepared for home ownership, have found that property, have worked with a professional to jump back in and capitalize on that opportunity. And so we know that mortgage rates continue to remain lower than one year ago, more inventory for buyers to choose from in the last few years as Freddie Mac's chief economist also remarked in the recent rates that were released. So, how are you seeing some of the buyer propensity in comparison to years past at this point in the season where we know people are checking their list, they're getting out there, and they're trying to figure out what's going to sit within their price point and whether that be on the existing or the new home side? Yeah, I think it's it's an opportunistic market as I spoke to just a few moments ago. Rates are now in this new normal trading range of call it low sixes to the upper sixes and yet they move in there. So for those prospective home buyers who've done their research, that have saved, have prepared their credit, and they've found that home, when they see something that is going to again incentivize them to go do it, they're going to jump on it because if not, there's someone else more than likely that's looking at that same property. So having a pre-approval and getting out there with a real estate professional and making that offer when the when the rates are good or the prices come down is going to be incredibly important in this competitive market. What are you seeing in some of the generational differences? Members of Gen Z, even, maybe financing their home purchases. Yeah, interestingly enough, right? The Gen Z and the millennials still believe that home ownership is an achievement in life and it builds long-term wealth. And ultimately, they're doing the things that I would say past generations have done to achieve dream that dream of home ownership, whether that's taking out an extra job to save for a down payment, whether that's um really considering moving in with siblings. We've saw some good data on that or even asking mom and dad for a loan to get into that in addition to some of that 529 work that are previous your previous uh individual was chatting about. A study, we know, by the National Association of Realtors found that the average first-time home buyer was 38 years old last year. Do you think that number could retreat or go down in the near term? You know, it has certainly been increasing over the last call it five years to the number that you talked about that 38. I would not frankly be surprised if it moves a little bit here in the interim, but then I really do think it's going to flatten out as this new normal environment kind of takes place and we begin to see inventory come online and the market begins to function a little better than it has here recently and more closely to how it has historically. I told myself I would own a home by age 32 when I was graduating college. Boy, did I have a lot of learning to do. Matt, thanks so much for taking the time. My pleasure, Brad. Thanks. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
This is an 'opportunistic' housing market
The housing market has been hit by high mortgage rates and low inventory, creating confusion for consumers who want to know whether or not now is the time to buy. In the video above, Bank of America head of consumer lending Matt Vernon shares the results of the latest Bank of America Homebuyer Insights Report and explains why, for some buyers, it could be an "opportunistic" market. To watch more expert insights and analysis on the latest market action, check out more Wealth here.
Yahoo
6 days ago
- Business
- Yahoo
BofA Report: 60% of Homeowners and Prospective Buyers Uncertain About the Housing Market - A Three-Year High
Despite Uncertainty, Prospective Buyers Are Cautiously Optimistic About Market Improvements CHARLOTTE, N.C., May 28, 2025 /PRNewswire/ -- Uncertainty among current homeowners and prospective buyers is at a three-year high, with 60% saying they can't tell whether now is a good time to buy a home or not, compared to 48% two years ago, according to the latest Bank of America Homebuyer Insights Report (PDF), released in coordination with Bank of America Institute's latest On the move analysis. Despite this, 52% of prospective homebuyers are optimistic about the state of the homebuying market, saying it's better now than it was a year ago. Three out of four (75%) expect home prices and interest rates to fall and are waiting until then to buy a new home, up from 62% in 2023. "With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them," says Matt Vernon, Head of Consumer Lending at Bank of America. "As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action." Gen Z compromising in order to buy The new research also reveals that despite financial hurdles, the dream of homeownership remains a powerful motivator for both Gen Z and Millennials, driving them to make sacrifices in the present and prioritize the long-term financial security a home can provide. For Gen Z and Millennials, three out of every four current homeowners say owning a home is a milestone achievement. The 2025 data shows: 30% of Gen Z homeowners reported that they paid for their down payment by taking on an extra job, compared to 28% in 2024 and 24% in 2023. 22% of Gen Z homeowners reported that they purchased their home with siblings, compared to 12% in 2024 and 4% in 2023. 34% of Gen Z prospective homebuyers would consider living with family or friends while waiting to purchase a home. 21% of Gen Z prospective homebuyers say they plan to pay for their down payment with a loan from parents or family, compared to just 15% of the general population who say the same. Among all prospective homebuyers, this number is up from 12% in 2024 and 9% in 2023. "Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there," says Vernon. "They are finding creative ways to afford down payments and working hard to improve their financial futures." Severe weather is top of mind for homebuyers 62% of current homeowners and prospective buyers are concerned about the impact of severe weather and natural disasters when it comes to homeownership, and 73% feel it is important to buy in areas where there is lower risk of these events occurring. Many (38%) have changed their preferred home purchasing location due to the risk of severe weather in the area. Among current homeowners, nearly a quarter (23%) have personally experienced property damage or loss in the last 5 years due to severe weather events. 65% of current homeowners are taking measures to prepare their home for the risk of severe weather. Bank of America Homebuyer Insights Report Sparks Research conducted a national online survey on behalf of Bank of America between March 20 and April 22, 2025. A total of 2,000 surveys (1000 homeowners / 1000 renters) were completed with adults 18 years old or older, who make or share in household financial decisions, and who currently own a home/previously owned a home or plan to own a home in the future. The margin of error is +/- 2.2 percent at the 95 percent confidence level. Select questions allowed respondents to choose more than one answer, resulting in responses that may equate to more than 100 percent. Bank of America Institute Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank's proprietary data, from 69 million consumer and small business clients, 58 million verified digital users, $4.3T in total payments in 2024 and $1.2T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public. Bank of America Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC). For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts. Reporters may contact: Susan Atran, Bank of America Phone: View original content to download multimedia: SOURCE Bank of America Corporation
Reuters
6 days ago
- Business
- Reuters
US home buyers are most uncertain since 2023 as rates surge, BofA survey shows
NEW YORK, May 28 (Reuters) - U.S. homeowners and prospective buyers are feeling the most uncertain about the real estate market since 2023, a Bank of America survey showed on Wednesday, as rising mortgage rates deter buyers. Of the 2,000 respondents to BofA's poll, 60% said they could not tell whether it was a good time to buy a home, according to a report published by the nation's second largest lender. That is up from 57% last year and 48% in 2023. Volatile interest rates and elevated home prices have fueled uncertainty, prompting consumers to slow house purchases during the spring season, when activity typically picks up, Matt Vernon, head of consumer lending at Bank of America, told Reuters. "We're certainly off to a slower start, from a spring season perspective, than we've historically seen," he said. The sluggish start to a spring season contrasts with the first quarter, when BofA saw an 80% jump in mortgage applications as buyers were tempted by increasing home inventory and lower long-term bond yields. Mortgage rates (USMG=ECI), opens new tab have increased alongside the yield on the benchmark 10-year U.S. Treasury note. Volatility in rates has been driven by concerns over the Trump administration's economic policies, including tariffs, and the nation's deteriorating fiscal outlook. Still, the survey showed 52% of prospective home buyers felt the market was better now than it was a year ago. Three out of four expected home prices and interest rates to fall and are waiting until then to buy a new home, up from 62% in 2023. "This continued rate period in the 6% to 7% range is now becoming a new normal," said Vernon. "They are looking to be opportunistic for rates and prices to come down."
