Another New Year…

Another New Year…

And you know what that means: It’s time for my annual Real Estate & Mortgage Predictions! After researching my mortgage knowledge base for 2019, the following is my take:

Interest Rates are not moving a whole lot – Between the trade wards, fears of an impending recession, and continued low inflation, we have a formula for rates staying steady.

-ARM’s will garner more market share – With fixed rates up around a percentage point higher, home buyers may start gravitating in larger percentages to adjustable rate mortgages. Although interest rates on these are only slightly better, it will be enough to entice many to scoop them up. Especially if they don’t see the home they are buying as their “forever” home.

-Home Prices will continue to rise – Probably not at the same fast clip as the last few years, but still in a upward trajectory. Sure, prices in some of the frothier areas of the country may actually decline but the vast majority, including Atlanta, will likely continue to prosper.

-The Spring buying season for 2019 will be strong – While we may see slightly more inventory and maybe not quite as many bidding wars, we expect the season to be robust.

-Millennials will buy, Baby Boomers will sell – We will continue to see the younger generation purchasing homes in droves and the older generation cashing in and down-sizing.

-Cash Out Refinances & HELOCs will grow in popularity – Even though many home owners are locked in with super low rates from the recent past, there will be some that opt to take cash out from their significant increase in equity. Oftentimes this can make sense if you need to consolidate debt or have plans for any major home improvements.

-More out of the box Loan Products and less restrictive underwriting standards – While we have already seen more of this coming back, new offerings will continue to be released. Underwriting standards for most conventional loans will continue to loosen up as well, as we have seen trending in this direction for 2+ years now opening the door for more folks to qualify.

-More homebuyers will move out of State – With more and more areas of the country becoming less affordable, we will see more people opting for cheaper pastures. For example, people from Southern California are already starting to move to cheaper locales like Oregon and Idaho.

Wherever you fall in any home financing scenario, we are here for you!!

Happy House Hunting in the New Year!



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