January 26, 2021
COLUMBIA, Mo.--(BUSINESS WIRE)--The COVID-19 pandemic forced nearly half of Veterans to change their homebuying plans in 2020, but most Veterans are optimistic about buying in 2021 and plan to purchase within the next five years, according to a new national survey from Veterans United Home Loans.
Nearly two-thirds of Veterans believe the next 12 months will be a good time to buy a home, and about 1-in-3 plan to buy this year. A whopping 58 percent of Veterans – that’s 11.3 million people – plan to buy a home in the next five years, according to the survey of 900 Veterans, which was conducted by global research firm Kantar on behalf of Veterans United, the country’s largest VA purchase lender.
“Despite the pandemic’s challenges, Veterans are confident in their finances and the homebuying outlook in 2021 and beyond,” said Chris Birk, vice president of mortgage insight at Veterans United. “Tight inventories and rising rates aren’t likely to keep many Veterans on the sidelines. There’s a big year ahead for Veteran homebuying.”
Key findings from the 2021 Veteran Homebuyer Report include:
“Even if mortgage rates rise this year, it’s still an incredible time to finance a home purchase,” Birk said. “Veterans already had access to the industry’s lowest average fixed rate because of their VA loan benefit. We’re going to be in this window of historically low rates for a while longer, giving Veterans an extended opportunity to lock in lower borrowing costs and even stretch their homebuying budgets. Part of the challenge is simply making sure Veterans understand all of their mortgage options.”
Veterans are split on what 2021 will bring in terms of continued economic recovery in the wake of the pandemic, but they feel much more confident about their own financial situation, which is a positive harbinger heading into the spring homebuying season.