If you have been considering purchasing a new home but have been putting it off, 2017 might be the year you want to make the move to get your new house. There are changes expected within the housing market, which will greatly affect purchasing decisions later this year and into the near future.
- Interest rates are starting to increase. Since the election, interest rates on all types of home loans have increased. This trend is expected to continue, with some anticipating rates as high as 5% by the end of the year.
- Inventories will continue to shrink, creating sellers’ markets. We have already seen housing shortages in some high-demand markets, and this trend will continue throughout 2017.
- More single people are purchasing homes. Part of the reason inventories are shrinking is because of the recent increase in single people buying homes. Monthly mortgage payments in many areas are now much less than monthly rental rates.
- Real estate prices are expected to increase. There are concerns during Trump’s presidency that inflation will increase, resulting in higher housing prices.
- Sellers are still helping pay some or all of the closing costs. In many markets where buyers are asking sellers to help with the closing costs, they are still agreeing to do so, but this may not last.
For more information and assistance finding the right mortgage program to purchase your new home, call the mortgage experts at Elite Financial by phoning (800) 908-LEND or (805) 494-9930 now!