This year’s real estate market has the potential to be the best we have seen in ten years. Experts from Freddie Mac have predicted that “total home sales, housing starts, and house prices will reach their highest levels since 2006…”
Several economic conditions are influencing the 2016 real estate market and are detailed in a recent article, “Is Housing Poised to Return to Pre-Crisis Glory?” published on DSNews.com by Brian Honea. Specifically, mortgage rates continue to remain low and are predicted to stay below 4 percent for the remainder of the year. Additionally, housing may become more affordable as the rate of home appreciation slows to a steady rate just below 5 percent. Lastly, the potential for very favorable labor conditions, such as increases in job growth and the potential for wage increases, are important factors which will also influence housing market.
For more details, read the article.
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Despite the Federal Reserve rate increase late last year, the 30 Year Mortgage rate has continued to decrease. It has been predicted, in fact, rates could “head lower into record territory”. Nonetheless, Fannie Mae has just reported its worst monthly home purchase sentiment in 18 months.
A recent article on CNBC.com’s Realty Check outlines some of the reasons home sales have been on the decline so far this spring. For example, many buyers and sellers do not believe that this is the best time to purchase or sell a home. Consumers are concerned about the economy and job security; to add, mortgage credit availability has tightened.
The release of key domestic economic data this week could have an impact on the direction of the mortgage rates.