Grim residential mortgage news? Not here!

Those of you who follow housing news know that the Mortgage Bankers Association recently reported that, nationally, mortgage applications have hit a 27-year low.

In the midst of a housing crisis, how can this possibly be?

Two reasons are clear: Climbing interest rates, combined with historically high home prices, have many buyers skittish.

Today’s conventional mortgage interest rate is 6.67%. For a home selling for $400,000 with a loan of $360,000, that means a monthly mortgage payment of $2,315.84.

Those gaudy numbers affect both buyers and sellers. Buyers are likely waiting for interest rates to come back down and house prices to decline, at least slightly. Some who’d like to sell their homes and move are reluctant because it may mean giving up a historically low interest rate to buy a home that would cost more.

Plus, those who would normally buy starter homes (smaller capes and ranches) are being blocked by people selling their larger homes and paying cash for entry-level homes.

Manufactured homes bucking the trend

Manufactured housing remains a great homeownership option for many. It’s an affordable way to build real equity while enjoying the benefits of owning their own homes.

This is especially true for renters, who are feeling their own price squeeze.

Prequalification numbers for our Welcome Home Loans are down only slightly from last year, mostly due to lack of available homes. We have prequalified over 600 potential homebuyers so far in 2023.

Manufactured housing remains a great homeownership option for many. It’s an affordable way to build real equity while enjoying the benefits of owning their own homes.

This is especially true for renters, who are feeling their own price squeeze. Currently, average rents in N.H. are $1,764 for a two-bedroom apartment. One of our home loan borrowers had a brand new three-bedroom, two-bath, home installed in a resident-owned community (ROC) in the Concord area. Her housing expense is less than $1,500, including the cooperative’s lot rent.

And if your income qualifies you for down payment and closing costs assistance of up to $25,000, lowering your costs even more, wouldn’t that make the decision to buy a new manufactured home even easier? Our best estimate is that around 200 house lots in ROCs are waiting for homes.

Our mortgage originators are ready to help you determine what you can afford for a mortgage. Once you send in a short prequalification form they will call you to talk about your needs and options. We can help you locate an empty lot, an approved home retailer, and see if you are eligible for any down payment assistance. Within a few short months, you could be in a new home wondering why you didn’t call sooner.   

Kathi Paradis is the Community Loan Fund's Vice President of Residential Lending and Compliance.