Routing # 256078446
MORTGAGE KNOWLEDGE CENTER
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How Remote Jobs Influence the Housing Market
What you'll learn: What to know about how the prevalence of remote jobs affects the housing market.
EXPECTED READ TIME: 4 MINUTES
April 12, 2024
In the last few years, remote jobs have become the new normal. According to Census data, the percentage of home-based jobs tripled between 2019 and 2021. While some employers have made efforts to call for a return to office, many people have been able to maintain their new remote lifestyle.
This remote work boom has had a significant effect on many aspects of the economy, including the housing market. Untethered from tedious commutes to an office, people have the freedom to rethink where they live and relocate whenever or wherever they desire. However, this new wave of remote homebuyers has caused an increase in demand for all kinds of housing options and a surge in home prices, even in cities and rural locations that may have been considered less desirable a couple years ago.
In this article, we will dive deeper into the affects remote work has had on homebuying trends and the challenges homebuyers may be facing as a result.
Remote work and housing market trends
The effect of remote work is far from minor. In fact, it is created a huge wave in the housing market and homebuyer trends. It is no longer just about where you live, but how you want to live.
It is the first time in decades that we have seen such a massive buying shift from cities to the suburbs. Homebuyers are also looking for more spacious housing to accommodate their home offices and the growing emphasis on work-life balance. Plus, beyond location and size, homeowners have become increasingly aware of sustainability and eco-friendliness. Energy-efficient appliances and solar panels are just a few ways homeowners and buyers are looking to integrate sustainability into their homes.
However, as this increased demand outweighs current availability, home prices and mortgage rates are remaining stubbornly high.
Remote work and home market value: Are they correlated?
Most experts agree that remote work is here to stay, and homebuyers are taking full advantage of the flexibility working remotely offers. As long as you have an internet connection, your homebuying options are almost endless. Or are they?
Homebuyers are not only increasing population numbers in cities like Boise and Austin, but they are also bringing their high salaries with them. The consequence is less housing availability and higher home prices. The result is today’s hot housing market.
Many people are not letting it deter their dreams of homeownership though, as many prospective buyers report they are willing to look in rural areas and areas with a lower cost of living to find affordable housing.
Should you wait to buy?
Even if you have the freedom to move thanks to a remote job, the current housing market and interest rates may be cause for some hesitation. Higher prices, increased mortgage rates, and competition between eager buyers have created a favorable market for sellers. However, recent data and trends are hinting that a potential shift to a buyer’s market may be on the horizon, including indications like:
- Increased mortgage rates decreasing demand
- Rising inflation may force sellers to lower prices
- More house inventory becoming available
- Houses are lingering on the market for longer stretches
It is important to take stock of the current market and trends as well as your own financial situation. Taking time to improve your credit score, getting pre-approval from a trustworthy lender, and building a reliable homebuying team will go a long way in helping you secure a home in the location of your dreams.
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Home Buying Steps
Mortgage Products
Disclosures
1Conventional Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
2FHA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.375 discount point, which equals 1.375 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 96.5%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
3VA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $450,000; loan-to-value ratio of 95%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of $995.
4Jumbo Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 0.5 discount point, which equals 0.5 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, non-conforming, fixed-rate loan. Loan amount of $1,009,000; loan-to-value ratio of 70%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.
Routing #256078446
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