As 2016 draws to a close, it’s a good time to reflect and look ahead to what 2017 may bring. The Trump Administration’s plans to cut taxes and prioritize spending on infrastructure have already started to impact the housing market and mortgage marketplace. Many of the trends we’re already seeing at the end of this year are expected to continue to affect home financing in 2017. Let’s take a look:
The financial markets reacted to the initial uncertainty surrounding the Trump Administration with a post-election uptick in mortgage rates. Despite the recent increase, interest rates are still lingering near historic lows. But, how long will the low rates last? According to a recent Zillow article, “This dramatic rate spike might level off near-term, but don’t count on a reversal back to record lows.” If the economy continues to gather momentum and inflation picks up, chances are good that the Fed will increase rates at the final policy meeting of the year in mid-December. There’s still time to act on low rates before another increase and a rate lock can help ensure that you don’t miss an opportunity! Here’s what you need to know:
It is often said that buying a home is the most significant purchase you will make in your lifetime. It’s a major financial commitment and an important milestone, so you want to get it right. This means doing some homework and seeking professional guidance. A real estate agent can assist with your home search, but what about securing a loan? How do you find a mortgage professional you can trust to consider your best interests, help you select the right product, and guide you through each step of the home financing process? The following tips will help you conduct a thorough and efficient search for a lender you can rely on to help make your dreams of homeownership a reality!
“Should I work with a bank or a broker?” This is a question often asked by home buyers as they evaluate options for a mortgage service provider who will best suit their needs. Recent news has only done more to shine a bright light on how the lines between mortgage services, traditional banking (such as checking and savings accounts), and higher level investments are blurred. Consumers today have choices that come with greater complexity and consequence than in years past.
In a competitive housing market, bidding wars are a sign that competition is fierce among potential buyers. While competition can be good news for sellers, for those looking to buy, it may cause dilemmas once it’s time to submit an offer. In fact, a recent survey by Redfin found that competition is a top concern for buyers, second only to affordability. Buyers know they must put their very best offer on the table, with aggressive timelines and as few contingencies as possible. So, how does a buyer who is financing their purchase improve their chances of getting an offer accepted?
It’s hard to believe it’s been nearly 10 years since the housing market took a turn for the worse. At the time it seemed chaotic, but it’s now clear what happened. The market was correcting and as a result, we saw a sharp downturn in home prices between 2007 and 2011. Things improved slowly over the next few years until recently, when prices starting rising much more rapidly. That has caused many buyers and sellers to assume that we must be heading toward another housing bubble.