Real estate predictions can often be tricky. There are many variables at play and unforeseen circumstances can greatly impact how the market will react. While real estate experts have already unveiled their 2020 predictions, plenty can change in the next few months.
Here are three below-the-radar trends that could affect the housing market.
More Affordable Housing
In recent years, the rise of higher-priced homes led many experts to predict further affordability hardships in 2020. However, some mortgage lenders have reported significant increases in revenue and expanded underwriting, which allows more room for reasonably priced properties.
Interest rates may rise but with enough capital saved, lenders can help homeowners by absorbing some of the costs and finding more affordable housing options.
Self-Employed Mortgage Access Act
The onset and rise of the new “gig economy” has caused many people to look for side jobs to make ends meet. Unfortunately, many of these jobs do not include W2 forms – a prerequisite for standard mortgage applications.
The proposed Self-Employed Mortgage Access Act would give lenders the ability to accept non-traditional income and job verifications, so more people can purchase homes. While the law awaits Congressional approval, lenders are already taking steps to help gig workers verify their income and employment without W2 forms.
Continued Mortgage Refinancing
Interest rates are often the make-or-break for entering the housing market. Luckily for homebuyers and owners, these rates have remained relatively low. Statistics show 2019 saw more properties refinanced since in 2016.
Taking advantage of lower interest rates has become a popular trend and if rates remain low, expect refinancing to continue.
Entering the housing market this year? The experienced team at By Carrier can help you find or build the perfect home for your family’s needs. Explore our active communities today!