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Personal Finances, Job Stability, and Low Interest Rates are the Three Greatest Influences on New Home Purchases, According to PenFed Credit Union Mortgage Survey

PenFed Credit Union’s Mortgage Survey finds 40% of adults nationally report personal finances or job…

  • August 22, 2019

PenFed Credit Union’s Mortgage Survey finds 40% of adults nationally report personal finances or job stability as the top decision-making factors when considering a new home purchase.

More than a third (37%) report low interest rates as the second greatest contributor. The national survey commissioned by Morning Consult highlights mortgage myths and reveals consumer sentiments and knowledge surrounding mortgages and home buying options.

Key 2019 survey findings include: 

  • Of those planning to buy a home in the next 12 months, 61% will be first-time homebuyers.
  • Nationally, 40% of adults report personal finances or job security as the top decision-making contributors when considering homeownership. More than a third (37%) report low interest rates as the second greatest contributor.
  • Nearly one in three (30%) said being unable to afford a down payment, in the city or town where they currently live, is the primary reason they are not looking to buy a home in that area in the next 12 months. Seventy-three percent report down payment requirements as important when deciding on a specific lender.
  • 59% of adults say knowing about Private Mortgage Insurance (PMI) coverage would impact their decision to choose a specific lender.
  • When thinking about purchasing a home, 76% of adults prefer to finance through a credit union or bank.

According to the survey results, those not planning to purchase a home report personal factors as the key reasons – such as being happy in their current living situation (42%) or personal finances (19%) – rather than external factors, like the state of the housing market (6%) or state of the economy (7%).

In fact, 30% reported the inability to afford a down payment as the primary reason for not purchasing a home in the city or town where they currently live in the next 12 months.

Significantly, the survey found that nearly 60% of adults nationally say knowing about Private Mortgage Insurance (PMI) coverage would impact their decision when choosing a specific lender.

More and more credit unions are offering mortgages, and more are innovating in this space.

For instance, PenFed has a new First Time Homebuyer Program was designed using these consumer insights and covers costly Private Mortgage Insurance (PMI) for buyers with less than 20% available for a down payment – saving buyers thousands.

Established in 1935, Pentagon Federal Credit Union (PenFed) is America’s second-largest federal credit union, serving 1.7 million members worldwide with $25 billion in assets.