It's still a big stretch for Americans to buy their first home. Many first time home buyers say they will have to spend more than 40% of their income on their mortgage. Laith Daik of Texas Loan Star Mortgage admits inflation is making it harder for them to qualify for a lower interest rate --- but says things are getting better. "There have been some improvements released recently that will specifically help First Time Home Buyers. The FHA and The VA Loan Programs are reducing the mortgage insurance premium --- which is a part of their loan payment."
Daik says inflation is playing a big part of it. "Things are more expensive across the board - in lots of areas. One good thing, though, is that we're seeing this as a BUYERS' MARKET which is very different than it has been for a few years!"
It may be a buyers market now, but inflation can cause young couples to use credit cards more often and that makes their debt - to -income ratio harder to approve for a lower interest rate mortgage.