Americans looking to lock in some good mortgage rates are getting great deals since some years. With interest rates in check, affordable houses are helping families realize their dream of owning a home. And if RealtorMag.com’s mortgage forecast is any indication, this era is going to continue in 2016 as well. Whether its refinance or new buying, rates are going to bring in even bigger smiles.
American Dream is within Reach – Now More than Ever!
For the past few years, mortgage rates have been a blessing in disguise. With a relative slow down in most areas, houses are within reach. Most Americans, especially first time buyers, have bought homes at good rates. For example, a fixed mortgage of 30 years is hovering around 3%-4% for the past few years.
As per the survey in RealtorMag.com, this year the sellers will likely see profits since most areas are showing signs of improvement. Median prices of homes have risen throughout the nation in the past few months. So, those looking to buy should hurry and make the most of low rates. Realtor.com thinks that 4.65% is in sight in 2016.
Another trend in the forecasts mention that ‘Millennials’ are major homebuyers. That’s because of the increase in rent prices which means many people make the logical choice of moving into mortgage, which is relatively stable compared to the rising rents. This trend is likely to continue in 2016 as well.
Here are some notable points from the real estate forecasts for 2016.
People who experienced a short-sale or foreclosure in the past and are now looking to re-enter the housing market are called boomerang buyers. As per Transunion, 2016 can see around 700,000 such entrants in home buying industry. Many people have improved their credit rating and want to take advantage of the low mortgage rates. This can be a huge category ready to be served in the coming years. FHA loans, with fewer hurdles and 3.5% down payment, are ideal solution for home buyers in this category.
Home Affordable Refinance Program (HARP) is the federal program that allows homeowners to move to stable mortgages with low rates and save money. Fannie Mae states that 2 million people refinanced through HARP. However, 2016 is probably the last boat to sail for those looking to refinance at current low rates.
The opportunity to shave years off the mortgage that too at low interest rates won’t last forever. The irony is that this program is not too popular. So, in the hands of the right real estate agent, this can be a hidden gem since the market is practically limitless.
Graying population is always predictable when it comes to the housing market. Their home ownership status usually includes downsizing or refinance. The burden to save for later years forces many to rent their empty nest. Although a huge market, this category has needs that depend on varying factors such as health status, family size, mobility etc.
However, baby boomers can take advantage of the fast-drying low mortgage rates to better plan their future. After factoring in key aspects like cash flow, price appreciation, property maintenance, insurance coverage, taxes and more. Products like a reverse mortgage are a good choice.
Being a presidential year, the rates are likely to be stable. Real estate analysts predict that comprehensive changes are expected in 2017. So, those sitting on the fence should choose sides quick.
Revive Property Group