INDIANAPOLIS — Mortgage rates are dropping from record highs and more homes are on the market. WRTV's Amber Grigley met with an expert to learn how Hoosiers can benefit from a slight shift in the market.
"We have to look for ways to make housing affordable and make it that first-time homebuyers have opportunities," Claire Belby, a spokesperson with F.C. Tucker Company said.
Homeownership, is considered by many a key part of the American dream. However, affordability has become a major concern in recent years.
"The National Association of Home Builders recently put out information that said people are spending somewhere between 38-40% of their household income on housing and that is high. Typically, you want that to be below 30," Belby said.
In July, Hoosier home buyers saw a little relief in the market. Home prices decreased, inventory increased by 32.5 percent, and as for interest rates.
"Interest rates had been above 7 and that's been the news for a while. We are seeing that ease off a little bit. We're seeing interest rates in the last few weeks dip down to middle 6's," Belby said.
WATCH | Increasing affordable housing in the Martindale-Brightwood neighborhood
There's a glimmer of hope but Belby said those in the market may still need to get creative to help others achieve their home-buying dreams.
"F.C. Tucker has a program to help with affordability called "Buy and Borrow Bundle,” said Belby. “You'll probably have opportunities for other programs like that because everyone is looking for more ways to make housing more affordable for people."
The F.C. Tucker Company said the average home is selling in 13 days, 27.1 percent faster than this time last year.
Realtors across the country are bracing for major changes in how they do business. On August 17th, new rules will take effect that overhaul the way real estate agents get paid to help people buy and sell homes. Up until now, home sellers typically had to pay a 5 or 6% commission.
In the future, buyers' agents must discuss their compensation upfront.
