Housing Trends for 2017
Jan 13, 2017
According to the Urban Land Institute’s annual Emerging Trends in Real Estate Report, the United States real estate market is in a better place compared to the rest of the world. If you’re thinking about buying a home in 2017, be sure to familiarize yourself the market trends below.
What to Expect in the Real Estate Market in 2017
1. Millennials will dominate the market
As we have begun to see in 2016, Millennials are beginning to purchase their first homes. Because of their majority, Millennials will continue to reshape the housing market. Not only will they change the market with their buying habits, but they will also drive up the homeownership rate and have more diverse homeowners.
2. Mortgage rates will increase
In the days following the election, we saw the fastest increase in rates for conventional loans since 2013. And this is just the beginning. Experts are predicting rates may increase 2-4 more times by the end of 2017. Make the most of a purchase or refinance by getting started soon.
3. It will be easier to get a mortgage
With the increase in availability of both jumbo loans and low down-payment loans, qualifying for a mortgage is easier than ever before. According to the Mortgage Credit Availability Index, it’s easier to get a mortgage now than at any time over the past 8 years. In addition, as the mortgage rates increase and the number of people refinancing decreases, banks will be more willing to work with borrowers to make up for the decline in business.
4. New homes will be smaller
For the first time since the recession, the median square footage for new homes fell this year. There are many reasons for this. One is the high demand for homes close to city centers (where there is less space). Another is the continued popularity in the “tiny home” movement. One of the biggest drives of this trend is that entry-level buyers cannot afford to purchase bigger homes anymore.
Refinance Your Home in 2017
If you’re thinking about refinancing your home, now is the best time all year to do it. Here at Home Point Financial, we will happily assist you with your loan to ensure you get the lowest rate possible. For more information on meeting with one of our professionals, please contact us today.