Good news if VA loans are a prominent tool in your arsenal: A newly launched index has found that prospective buyers are more optimistic about entering the market, with veteran buyers even more so.
The new Veterans United Homebuyer Readiness Index, a new proprietary index from VA-specialized lender Veterans United Home Loans, debuted with a reading of 67 in the third quarter. Before its public launch, Veterans United has been tracking the index since the second quarter last year; Q3’s reading is the highest on record, up from 62 in the previous quarter.
Veterans United also maintains separate sub-indices for veteran and civilian homebuyers, finding that veterans and service members currently feel more prepared for homebuying than their civilian counterparts. The readiness index for veterans had a reading of 70 in the third quarter, as opposed to 64 for civilians. The veteran index has consistently had a higher reading than the civilian index since Veterans United began tracking last year.
Some 74% of veterans and service members in the company’s quarterly national survey said they plan to buy in the next year, compared to just 69% of civilians.
“This growing confidence in the economy is translating directly into the housing market in communities across the country,” said Chris Birk, vice president of mortgage insight at Veterans United. “With inflation showing signs of easing and more consumers believing mortgage rates will stabilize or even decrease, we’re seeing a significant boost in homebuying readiness.
“Although high interest rates and home prices remain a concern among prospective homebuyers, there is growing optimism, especially among veterans and service members, which could drive increasing demand in the months ahead.”
Index readings are derived from survey questions relating to four areas: home purchase time frame, personal financial outlook, outlook on the U.S. economy and purchase motivators.
