I hope you've had a great holiday season and are enjoying the new year.

Things are looking up in the housing market, so if you are looking to sell and either down-size or up-size, or just looking to buy your first home, now is the time to consider it. Prices are expected to go up, as are interest rates. Both these can affect the home you can afford to buy.

If you have questions, and just don't know if the timing is right for you, give me a call. I'll be happy to give you any information you need to help you make your decision.

JoAnn Petrosino, REALTOR®, ABR, CRS, GRI, CHMS, CNS

The Real Estate Market Has Turned the Corner

A recent Home Price Expectation Survey revealed future home values will continue to appreciate nicely. Today we want to look at projections on the number of home sales (existing and new construction) we will see over the next two years. We researched what the National Association of Realtors (NAR), Freddie Mac and the Mortgage Bankers’ Association (MBA) are projecting for the housing industry going forward.

Here is what was found:

All three entities see the number of home sales increasing in both 2015 and 2016. This is further proof the housing market is back.
 

Where will Mortgage Rates be Headed in 2015?

We finished 2014 with the 30 year fixed mortgage rate at 3.87% as per Freddie Mac. This is very close to the historic lows in the spring of 2013. 

However, the Mortgage Bankers Association projects mortgage rates to be about 5% by the end of 2015. The website Investopedia agrees and gives some perspective on the 5% rate:

“Barring another financial and housing market implosion, and if the economy continues to improve, expect interest rates to rise in the latter half of 2015. If they do jump to the 5% range it will be a modest hike when compared to historical averages. Rates will still be far below the approximately 8.5% 30-year fixed-rates mortgages have averaged since 1971 when Freddie Mac started tracking them. Rates averaged 6% in the years leading up to the recession.”

Here are the latest 2015 mortgage rate projections from Fannie Mae, Freddie Mac, theMortgage Bankers’ Association and the National Association of Realtors: