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More good news on the housing front! Freddie Mac’s March 2016 Housing Outlook states that 2016 will be a banner year for housing. They forecast the best year in housing starts, home prices and home sales since 2006. Rock on housing…
This prediction is based on continued low-interest rates, increasing job growth and a gradual increase in the housing supply. Based on these factors, it is believed that the recovery should last into 2017. Things are looking jiggy for housing, and with it, for mortgage lending as well.
Millennials are expected to start making their move toward homeownership, increasing the first time homebuyer rate bringing more new buyers into to the market. This coupled with the expected rise in minority family homebuyers, predominately in the Hispanic community, will help drive home sales and lending. Are you ready?
Another factor is an increase in housing starts and an upward swing in wage growth. Wage growth has been somewhat stagnant but with the labor force participation rate relatively low and job growth continuing at present levels, there is a strong possibility that wages will finally start to rise. This will put more spendable cash into play making it a little easier for consumers to qualify to purchase a home.
There is pent up demand out there for the American Dream and 2016 may be the year it breaks out and takes advantage of the low rates, affordable housing and availability of mortgage money through low down payment options. Mortgage lenders need to shed their TRID worries and problems and get ready to rock and roll, doing what they do best; make mortgage loans to home buyers who need them.
The time is right for financing in the streets.
