Just few weeks into this new year and the U.S. already seen some pretty significant events that have, for some investors and consumers, created a lack of confidence in the stability of our economy. An ongoing government shut down, global trade issues and some stock market dips: it should be no surprise potential home buyers may to take pause before jumping into a big investment.
Yet, many experts remain relatively optimistic about how 2019 will fare as far as the real estate and mortgage markets are concerned. In an article published by the Washington Post, journalist Kathy Orton states, “In their forecasts for 2019, real estate experts anticipate the housing market slowing down, but not stalling, with prices and mortgage rates moderating.”
Orton reports the chief economist of NAR, Lawerence Yun believes, ““The forecast for home sales will be very boring — meaning stable.” Although home prices are predicted to rise, it will be at a slower pace than home owners have seen in recent years.
Realtor.com expects mortgage rates to reach 5.5 by the end of 2019 and overall, expects to see just 2.2 percent growth in home prices. Zillow echoes the other experts, with an expected 5.8 percent mortgage rate and a housing price increase of just 3.79.
The Mortgage Bankers Associations believes 2019 will perform better than other experts have predicted. MBA economists Michael Fratantoni and Joel Kan stated, “Even with the anticipated cool down in economic growth, we expect that housing demand will remain strong, mortgage rates will stabilize, wage growth will increase and home price growth will moderate, providing favorable conditions for growth in the home purchase market.”
Read the entire article.