4 Reasons to Be Excited About the Housing Market

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Filed under: Market Comentary

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Things are looking up in the housing market these days, for a number of reasons!  Here are a few factors that may indicate the housing marketing could continue in a strong and stable direction for a while.

 

• Low Interest Rates

Even though the federal funds rates increased in December, the demand from investors for “safe havens” with reasonable yields has kept mortgage rates low. The Federal Reserve is showing that it might delay any future rate hikes, meaning mortgage rates will remain at “rock-bottom” levels for the foreseeable future.

 

• Strength of Job and Wage Growth

Employment figures released by the U.S. Bureau of Labor Statistics show the trend line is definitely positive. The U.S. economy has recovered from a disastrous 10% unemployment rate during the worst of the recession, dropping to 4.9%. In addition, wages have been increasing, which points to a positive for the average homeowner or renter looking to purchase a home.

 

• Maturing Millennials

The oldest millennials are now in their mid-thirties, forming families, and entering the phase of their life where owning a home is very attractive. Vafai stated that 75 million Americans who are forming families and advancing in their careers will not hold out of buying forever. The millennials are expected to have a large impact on the housing and mortgage market for decades. In addition, over the next decades, a total of more than $30 trillion will be passed from “baby boomers” to millennials, which will make a strong and long-lasting housing boom.

 

• Boomerang Buyers

The housing market crash negatively impacted millions of people’s credit. Due to this, homeowners have had to wait through the two to seven-year period for their loan eligibility or credit to be repaired. These “boomerang buyers” are now back in the market, are on a rolling schedule of eligibility for government-backed mortgages, and are in a position where their credit is back on track. There are more than 1.5 million boomerang buyers eligible to buy a home again, which will surge over the next year and peak in 2018.

If you have any questions about the mortgage industry, please feel free to give me a call so we can discuss anything that you are thinking about.

Source: http://www.nationalmortgagenews.com/news/voices/four-reasons-to-be-enthusiastic-about-the-housing-market-1073574-1.html

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