2017 Mortgage Forecast: Clear Skies ahead
Posted January 15, 2017 in Real Estate Trends
While the super-low interest rates are behind us, we are getting back to normal interest days; thus, recent rate increases are not alarming. The National Association of Realtors economic outlook forecasts that rates for loans are expected to reach 4.5 % by the end of this year. Translated into monthly payments, a typical buyer could see up to a $70 difference per month according to the Association depending on the price of the home selected.
The recently released housing outlook by Trulia, a real-estate website, indicates that of 4,088 adults surveyed, only a small percentage [18%] of renters seeking to buy a home are concerned about rates impacting their ability to buy. What were the greatest concerns found in the survey?
- Down Payment: Fifty-nine percent [59 %] of participants listed saving for a down payment as the greatest challenge.
- Poor Credit: Thirty-eight percent [38 %] were concerned about poor credit.
- Rising Home Prices: Thirty-five percent [35 %] list rising housing costs as a hindrance.
The local outlook from me and Peak Mortgage is that our economy is going to grow faster than most recent years and that this growth will offset some of the higher interest rates that are typically associated with a growing economy. Indications are that the housing market is getting stronger here and we expect home sales to be higher this year than most of the home sales records we have seen in recent years.
As I’ve written in previous articles, mortgage rates can affect affordability; thus, seeking guidance through your chosen lending advisor before picking out a home can save you some stress. If you’ve been wondering if you should still purchase, this year’s economy should give most people one more reason to seek out buying a home.
The good news in the concerns listed by those surveyed through Trulia is that a good mortgage advisor can access programs that can offset a down payment and even help with closing costs which makes having a down payment, a non-issue. Credit can be navigated when time is allowed and there is always a navigable path for home shopping when you are guided by your trusted mortgage advisor.
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