Housing Market Set to Maintain Momentum
Freddie Mac shared good news recently, with a promise of a strong housing market for the remainder of 2016. Thus far though, the housing market has not matched up with the level of optimism Freddie projected previously this year. However, the mortgage servicer maintains that the market will continue to show growth going forward.
The report distributed by Freddie Mac states that mortgage rate declines during the first half of the year will revitalize the nation’s mortgage applications, especially those seeking to refinance. According to the data, interest rates for mortgages are the lowest they have been in almost three years. Thanks to this fact, homeowners are taking advantage of this opportunity to refinance more frequently than in previous years.
In other good news, homeowners can expect home values to continue on the upward trend seen so far this year. Freddie revealed that home prices should remain stable, and in some cases continue to rise over the course of the next six months. Specifically, the report said that prices will increase by 4.8 percent, although we know this is market and location specific. Next year should be positive for the market as well, with the price of homes set to rise by 3.5 percent, which is historically typical over the long term.
The Bottom Line
While the revisions made to the initial report outline a less significant boost to the nation’s economic development, the outlook for the housing market in the coming months remains very positive.
If you are looking to buy or sell South Florida real estate, now is the prime time to do so — and there’s no better team to trust than Stein Posner’s. It’s an exciting time in the South Florida market, so reach out to our real estate family to get the ball rolling.