Housing Market Predictions 2014
Everyone wants to know what to expect in 2014 and nearly every major publication has published their housing market predictions. Here is a brief summary of their housing market predictions for 2014.
More Homes Available
The staff at Forbes have released a number of predictions from housing experts. The number one prediction on their list is that more homes will be available. They and others claim that new construction and rising prices should bring more homes, both old and new, onto the market in 2014.
Fewer Underwater Homeowners
Investopedia author, Jean Folger states that as home prices rise we can expect more homeowners to emerge from being underwater. This will put many more homeowners in the position to finally buy and sell properties, further supporting the prediction that more homes will become available.
Mortgages Easier, More Expensive
Conor Dougherty from the Wall Street Journal says that mortgages may be easier to get, but they will also be more expensive. Rising home prices and falling mortgage delinquencies should give lenders and mortgage insurance companies more confidence. However, Dougherty also says that the upcoming mortgage regulations might kill lenders appetities to make credit more widely available to qualified buyers.
Mortgage Rates to Top 5%
According to a recent article on CBS Moneywatch.com, this is a matter of when not if. In the article they say that stronger economic growth will eventually lift the Federal Reserve’s hand out of the mortgage market in 2014, causing it to taper its bond-buying stimulus program. They were also kind enough to remind us of the effect that the mere mention of “tapering” had in June, when rates jumped a half a percentage point overnight.
What To Do About Predictions
What should you do about all this? If you’re planning on purchasing a home, you may want to consult with a licensed mortgage loan officer to discuss your financing options. According to the National Association of Realtors Affordability Index, home prices increases are outpacing income growth – a trend that is likely to get worse. The sooner you familiarize yourself with the financing options available to you, the easier it will be for you to take that leap.