New home sales moderating and what that data means

Blog Post Image
Real Estate

For first-time homebuyers looking to buy in 2021, a new survey from indicates that getting finances in order is a critical place to start. Almost half (47%) of those who bought their first home last year — successfully making it through the most competitive market in recent history — turned to their finances before they did anything else.

More than two-thirds of recent buyers were surprised by what they could actually afford

According to a survey of 1,000 recent and prospective first-time homebuyers in the U.S., more than two-thirds (68%) of shoppers were surprised by what they could afford for their first home. Forty-seven percent were surprised because their budget was larger than they thought, and 21% were surprised because it was less.

“The dramatic decline of mortgage rates in 2020 was a pleasant surprise for many buyers,” said senior economist George Ratiu. “For first-time buyers, especially, the drop in the 30-year mortgage rate from 3.65% in March 2020 to a record-low of 2.65% in January has provided unexpected leverage. Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the same.”

Find more information here: