TYSONS, Va.–Forty percent of adults nationally say personal finances or job stability are the top decision-making factors when considering a new home purchase, according to PenFed Credit Union’s Mortgage Survey.
More than a third (37%) report low interest rates as the second greatest contributor.
Among the other survey findings:
- Of those planning to buy a home in the next 12 months, 61% will be first-time homebuyers.
- 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.
- 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%).
- 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.
Identifying Relevant Trends
“At PenFed, we prioritize understanding consumer concerns so we can tailor products to meet those concerns and help consumers accomplish their goals,” said Lisa Cookson, SVP-operations, mortgage and home equity at PenFed. “Our annual mortgage survey helps us identify the most relevant trends, questions and motivations that influence potential homebuyers.”
PenFed further reported the survey found nearly 60% of adults nationally say knowing about Private Mortgage Insurance (PMI) coverage would impact their decision when choosing a specific lender. PenFed said that finding is the reason for its First Time Homebuyer Program, which is said 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. Additionally, members have the option to use its new Job Loss Protection insurance benefit, which provides peace of mind by paying up to six consecutive monthly mortgage payments of up to $1,500 per month should the buyer lose their job, the credit union said, adding members are also eligible for a Timely Reward benefit of $500 cash for their 60th on-time consecutive payment.
How Survey Was Conducted
The PenFed Mortgage Survey was conducted from July 19-24, 2019, among a national sample of 2,200 adults. The interviews were conducted online and the data weighted to approximate a target sample of adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus two percentage points.