The hot housing market and rising interest rates have forced homebuyer assistance programs to adapt

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As interest rates escalate and competition intensifies for the few houses on the market, homebuying assistance programs are adapting.

which helped her assemble complementary resources to solidify an offer for a house through the county program.Buyer assistance programs are designed for the long run, not to respond to rapidly changing market conditions. But as interest rates escalate and competition intensifies for the few houses on the market, staff at counseling programs are adapting the strategies they recommend to buyers.

In the past, home purchase assistance programs offered a patchwork of services with little coordination among nonprofits, lenders, developers and homebuyer education programs. Now, the players coordinate more closely, with lenders, counseling agencies and government programs collaborating on custom packages for each buyer.

Aspiring homebuyers with thin resources need all the help they can get. Record-low mortgage rates have been rising. In the third week of April, the average rate for a 30-year fixed-rate mortgage wasHome prices show no sign of leveling off, either. Nationally, home values have escalated 32% in the past two years. Defying laws of supply and demand, higher prices are not prompting an increase in houses for sale.

It took Chicago health care worker Lisa Harris, 42, two years to complete homebuyer education programs, repair her credit and save a down payment, but it paid off when she moved into her Habitat for Humanity house last December.

 

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