If you are in the mortgage industry, then it is very important to be sure that you are paying attention to the trends in order to determine if rates are on the rise. Potential buyers who are thinking about a home purchase should also be considering these trends, so that they can decide on the best time to buy their home.
What Will the 2014 Trends Look Like?
Now that we are over halfway through 2014, it is a good idea to take a look at the trends that have occurred this year, in order to determine what will happen to rates by the end of the year. So far, the Federal Reserve has continued a reduction in buying bonds, which means that Freddie Mac is now making the prediction that fixed mortgage rates will increase.
Only time will determine how much these changes will impact mortgage rates. At this point, it is anticipated that 30 Year Fixed interest rates will end the year @ 4.4%.
Another prediction by Freddie Mac is that rent gains and home prices will be sustained because of the low ‘for sale’ inventory in the market right now. The expense will be the affordability in the short term, according to the U.S. Economic and Housing Market Outlook that was published in June.
If you look at home purchase applications, it is interesting to see that they are still quiet, currently approximately 13% lower than they were last year. Even though the market has recently picked up, it still isn’t high enough to match earlier trends. The forecast for overall home sales was decreased by Freddie Mac: initially, it was thought that 5.5 million homes would sell, but the prediction has been lowered to 5.4 million.
According to the chief economist and vice president of Freddie Mac, Frank Nothaft, the trends of 2014 show that multi-family homes seem to be on the right track to match the predictions. But, the single-family housing results are coming in lower than the initial predictions. Sales of single-family homes are weaker than what they were anticipating at the beginning of the year.
Ongoing Trends
The question at this point is whether additional incentives will be needed for current homeowners to be interested in selling their home. Higher prices will encourage people to sell, which opens up the space for more developers to step back into the market. Over the past two years, there has been a small rebound in new construction of residential homes, but the prices are still less than they were several years ago.
If you want to keep up with the trends and understand the changing housing market and mortgage industry, then you should consider the information available here at DaveKevelighan.com. I will help you stay informed about everything that you need to know regarding the housing and mortgage industry, and you will also have easy access to information about mortgage programs. You can learn more by visiting DaveKevelighan.com, or by calling me anytime at (303) 520-0004.
