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A strong economy and rising stocks are leaving more prospective home buyers confident in their decision to go over budget, put less down, or use an adjustable rate loan, reports CNBC’s Diana Olick. Historically low inventory is leading to more bidding wars and fewer days on the market. Olick reports:

Buyers today not only need to be pre-approved for a mortgage, but they must also have a mortgage commitment. Home prices are hitting new highs and the gains are growing, just as mortgage interest rates are turning higher again.

Lenders are offering low-down-payment options that have not been available as recent as a few years ago, according to Olick. For example, Fannie Mae reintroduced a 3% down payment loan that it discontinued during the recession. Private lenders are revisiting subprime loans for borrowers with lower credit scores.

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