It's hard to believe, but we are in the back half of 2019! With a number of things going on in the housing market, such as declining interest rates along with home price and wage appreciation, you may be wondering what it all means. Here are a few things you should know:
An Update on Interest Rates:
Mortgage rates have fallen by over a full percentage point since Q4 of 2018, putting them at near-historic lows. Further, Freddie Mac's Primary Mortgage Market Survey reports that "the 30-year fixed mortgage rate average 3.60 percent, the lowest it has been since November 2016."
What does this mean for you? If you are looking to make a move, keep in mind that a small increase or decrease in rates can impact the monthly housing cost of a buyer. Low rates like these are good for buyers and sellers alike, because low rates mean buyers can get more for their money, and bring more qualified buyers into the market!
Expert Opinions & Observations:
Industry experts are consistently reporting a strong market as we close out the year:
Ralph McLaughlin, Deputy Chief Economist for CoreLogic :
"We see the cool-down flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.”
Lawrence Yun, Chief Economist at NAR :
"We expect the second half of year will be notably better than the first half in terms of home sales, mainly because of lower mortgage rates.”
“The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months…The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity.”
All signs point to a strong market for the remainder of the year. If you would like to know more about your specific market or how to maximize or time your real estate investment(s), we can help!