Now that the holiday season has come to an end it’s a good time to reflect on the past year as we try to forecast what’s up ahead for the Mortgage Industry in 2015! As the housing market turns a corner into the New Year the U.S. economy is well positioned to sustain a 3% growth rate for 2015, according to Freddie Mac.
What predictions can be made for 2015? Let’s look into our crystal ball and check out the top 5 Real Estate trends to look out for this year.
Home values will keep rising but not at such a rapid pace. Because home prices trends tent to vary drastically at a local level it’s hard to generalize the housing market as a whole. That being said, CoreLogic forecasted a rise in nationwide process by 5.7% from July 2014 to July 2015. This means there is more gains to come. 1
The Southwest is probably the only area to see double digit gains. Based on Zillow’s interactive forecasting tool that can be adjusted based on the projected increase (or decrease) in home values predicts the biggest price gains in 2015 to come from the Southwest. 1
Keep looking for mortgage rates below 5% for the entirety of 2015. Freddie Mac predicts interest rates to climb throughout 2015 and hover around 4.6% for a 30-year mortgage which means they should stay below 5% which is still considered to be historical lows. 2
The foreclosure inventory will most likely decline sharply. When the housing market crashed it was no surprise when home foreclosure activity spiked. As the market continues its post-crisis healing process so does the foreclosure inventory. 1
Obtaining financing in 2015 might not be as hard as you think. If you’re a first-time homebuyer this could be amazing news! Areas that have seen “loosening” are most apparent in credit scores and debt ratios. This means more opportunity to those who previously felt unable to obtain financing whether because of low credit score or high debt volume. 1
Stay ahead of the curve this year by reading and subscribing to my blog where I’ll share weekly updates on what’s going on in the Mortgage and Real Estate Industry. Hope you had a great New Year and I wish you a prosperous 2015!
Branch Manager/Mortgage Consultant
On Q Financial-Mortgages Simplified
NMLS #641778/ LO-FL 22820