Mortgage & Home Market Predictions For 2018
2018 is approaching quickly and for those of you that are looking to buy a home or are already paying off a mortgage, the state of the economy is looking favorable. As you can see from this included newsletter on mortgage and home sales from our friends at SAC Federal Credit Union, Freddie Mac anticipates that the housing market will remain strong into and throughout 2018, due to the very strong labor market and low mortgage interest rates.
Corelogic reports over 50% of homeowners are experiencing increases in home equity. With that being said, the total number of mortgages residential properties with negative equity declining 10% from quarter 1, 2017, compare that to quarter 2, 2016 when negative equity decreased by 21.9%. The housing market is expected to rise 2% from 2017 to 2018.
With all of this information, it appears the economic environment remains favorable for the housing market along with the mortgage market for the 2018 year.
Check out these articles if you are looking for more insight to the housing and mortgage markets for 2018:
“New homes are expected to be a ‘primary driver of sales in 2018,’ as 1.33 million housing starts are predicted next year - up from 1.22 million in 2017… Total home sales are expected to increase about 2% from 2017 to 2018…”
“A comprehensive survey from the Urban Land Institute gives us a detailed perspective…”
“The economic environment remains favorable for housing and mortgage markets. For several years, we have had moderate economic growth of about 2% a year, solid job gains and low mortgage interest rates. We forecast those conditions to persist into next year.”
“Recent housing market forecasts for 2017 through 2018 suggest that home prices in the U.S. could rise somewhere between 3% and 5% over the next 12 months. From a historical standpoint, this could be considered ‘normal’ growth. When looking back 30 years or so, home prices in the United States tend to rise by about 3% to 4% annually - despite the occasional bubble or bust.”
“Inventory needs a miracle, buyer interest may be dwindling and real estate is thinking seriously about driverless cars.”
If you're ready to start looking for a new home, please contact The Fairfield Team and let us help!