Are you looking to buy a home before the year comes to a close? In the second half of 2019, real estate experts anticipate several market trends, including a rise in home prices, low mortgage rates and a market driven by millennials.
Millennials Make Their Move
The current sentiment that millennials won’t settle down is starting to shift. In the second half of 2019, experts believe many millennials will make a down payment on their first home.
According to a recent article in Forbes, more than half of all mortgages originated by Fannie Mae and Freddie Mac in 2018 went to first-time home buyers. As millennials reach their prime home buying years, those numbers should continue to grow. Since 2017, this generation has accounted for the largest share of mortgage originations in the country.
Home Prices Will Rise
Since 2012, home prices have experienced a steady rise. Though there was a slight dip in price appreciation between 2017 and 2018, this helped improve affordability for many would-be buyers.
The most recent Home Price Index Forecast from CoreLogic supports this theory, predicting a 5.6 percent increase in home prices by May of 2020.
Mortgage Rates Will Stay Low
Last month, mortgage rates reached their lowest point since late 2016, averaging 3.80 percent according to Freddie Mac. This caused a number of refinancing activity in late June.
A chief economist at Fannie Mae told Forbes, “The Fed has moved to a bias toward easing, as global activity has slowed. Interest rates have fallen as a result and could move lower if the Fed acts to lower rates as insurance for economic growth.”
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