Trendy? 2016?
pointit.com
Trends-cultural, political, social - - trending seems to be what everyone seems to be interested in. Catching the wave as it goes by, or better yet, being ahead of the wave and reaping the benefits.
Zombies, super heros, and dystopian societies are all trends that are manifesting themselves in entertainment, farm to table in fine dining; so are there trends to be found in housing and mortgages?
Zombies, super heros, and dystopian societies are all trends that are manifesting themselves in entertainment, farm to table in fine dining; so are there trends to be found in housing and mortgages?
Of course there are. From those who are in the know I am learning that open concept is on the way out, as is granite for every flat surface. Mortgage lending can be trendy too - -so for the mortgage hipster, here is what is trending for 2016.
Interest Rates: The trend currently is down. While rates are not expected to hit the lows of a couple years ago,t he short term trend is rates hovering around or just below 4%. However, that trend is expected to reverse itself in 2016 and by the end of the year we could be close to 5%.
Credit Scoring: There are a couple of lenders on the West Coast that are experiencing with doing away with credit scoring in their loan approval process. The idea is to evaluate the history of payments and open debt, rather than assign a number to it. How this plays out with Fannie Mae and Freddie Mac and selling mortgages on the secondary market was not clear to me as loan sales are credit score driven-but it will be interesting to watch. In the meantime, for most of us, there seems to be a trend towards a relaxation of some credit rules which should help more buyers obtain mortgages.
Increasing Rents: There is a definite upswing in the cost of rent according to Fortune Magazine - - 8% for 2016. The reason being increased demand and decreased supply nationwide.
And that leads us to this trend:
Millennials getting into the housing market. The biggest group will be the older millennials-those that are 35-40 years old, but we should also see large numbers of 25-30 somethings seriously considering purchasing their first home this year. In fact the millennial generation will be the largest percentage of home buyers this year.
Housing Prices: Nationwide should increase 3%
1.5 million new households are expected to be formed.
Sounds like a good year to jump on the trend and buy.
No comments:
Post a Comment