If you can remember all the way back to the end of last year, more than a few experts had predicted higher mortgage rates for the US housing market in 2019; However, today’s mortgage rates continue to remain attractively low to the benefit of those looking to buy a home or refinance an existing mortgage.
As we approach the final few months of the year, questions abound about where the trends are headed for the remainder of the year and what the experts are forecasting. Let’s take a look at what the remainder of 2019 might bring.
A Changing Tide, a Mixed Bag or More of the Same?
If the past is predictive of the future, there are several trends worth noting. For instance, sellers have benefited from a shorter supply of homes since 2012, yet an increase of 30,000 more pre-owned homes and 33,000 more single-family houses were on the market as of April 2019 (compared to April 2018). In addition, 617,000 houses were sold in the United States last year – the most since 2008.
Also, while home prices continue to grow in 2019, they have done so at a slower pace. For homeowners, that still means more value/more equity in their homes. For sellers, it's the same thing, but with the potential for actual profit. However, there is also the risk of less bidding. For buyers, that may mean expanding their home searches and looking at a variety of loan options to truly meet their needs.
In trying to keep up with the new-home demand, construction companies have been challenged as the overall number of housing starts for August 2019 actually rose by 12.3% for a 12-year high. Fannie Mae and Freddie Mac have reported that over half of their originated mortgages in 2018 went to first-time home buyers and many of these millennials continue to drive the market. This tech-savvy demographic continues to seek easier online home shopping experiences, higher functionality from a potential home’s space, more energy efficient options and smart appliances to match their lifestyle, plus an affinity for alternative big cities with a more affordable cost of living.
So What Does It All Mean?
While it’s impossible to know for sure if the current trends will hold, experts like the ones quoted above seem to offer an optimistic view of the housing market for the remainder of 2019 spurred by low interest rates and other positive signs.
So are you poised to take advantage of today's market? Whether you’re a first-time homebuyer or a seasoned homeowner looking for your next dream home or a money-saving refinance, New American Funding can help you succeed with your financial plans. Contact us today!