What to expect for 2015’s housing market
12/16/2014 | Author: Editorial Staff
According to realtor.com’s chief economist, 2015 will have positive trends in the real estate industry, thanks to an improving economy. But even with the predicted rise in buyers, end to the foreclosure crisis, and new homes being built, your clients will still experience struggles with credit and face higher mortgage rates. Realtor.com makes five predictions for 2015, including these three:
Rising mortgage rates. The improving economy means mortgage rates will probably rise and are forecasted to be around 5% by the end of 2015 for a 30-year fixed-rate mortgage. Let your prospects and clients know that the rates are on their way up, so buying earlier in the year may save them money.
More millennials will be looking to buy. Sixty-five percent of first-time homebuyers are millennials, and this generation is bigger than the baby-boomer generation. Although they’re eager to buy, student-loan debt and challenges finding jobs mean they’ll face more hurdles meeting credit-qualification standards. Be prepared to help your millennial clients find resources to improve their credit and strengthen their position as homebuyers.
Access to credit will still be limited. New federal housing policies may help change the current stricter qualification standards that many consumers face. However, it still may take more effort for consumers to get the credit they need. Let your clients know what to expect and prepare them for potential hiccups in the loan-approval process.
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