We are six weeks into 2019 and the mortgage industry seems uncertain. You may be asking yourself, “Should I buy or wait?” or “What are my options?” These are valid concerns but luckily, we’re here to help. Let’s explore three trends we will likely see in 2019.
A seller’s market forever?
Yes, we are still in a seller’s market which means most sellers have the negotiation power. When you take this and add in rising home prices, it seems like a bad situation. But things are changing. Real estate forecasts suggest that the number of available homes will rise in 2019 allowing for a possible shift to a buyer’s market.
More loans are being approved
There’s good news! Banks are still issuing more mortgage approval thanks to an ease in mortgage lending standards. Does this mean lenders are turning a blind eye? No! But there is a reason for the influx in approval.
The main reason is that Fannie Mae’s and Freddie Mac’s criteria are not as strict as they used to be–especially when mortgage loans come from lenders. The result is a borrower with a high amount of household debt can qualify for a mortgage loan with less money down. An increased loan-to-value (LTV) ratio. An increased debt-to-income (DTI) ratio.
It seems everyone wants to know if mortgage rates will rise this year. Truthfully, it seems likely we will see a rise between 0.1% and 0.4% this year. The good news is that mortgage rates go up and down depending on how the wind blows and even if we see a rise, it will be slow.
Don’t be scared to get your dream home!
Need help understanding your options? Give us a call at 949-356-6400.