Many are eager to get a mortgage now before mortgage rates go up.
Chicago, IL (PRWEB) December 30, 2014
Peoples Home Equity believes 2015 is going to be a big year for housing; the following are a number of expectations the lender has for what will come in the new year.
It will be the year of the first-time home buyer, specifically the age category of 25 to 29 years old. The following are a number of expectations Peoples Home Equity has in mind for 2015.
First-time Home Buyers
2015 will be the year of the first-time home buyer, specifically the age group from 25 to 29 years old. This age group has been burdened with the financial crisis, recession, high unemployment, stagnant wages and high student debt. This age group is so tired of making rent payments to their landlord that they are very eager to purchase a property. Finally, this age category is catching a break with a nationally low unemployment rate and low inflation. This means 25 to 29 year olds have had time to land a decent paying job, build their credit history, save for a down payment, and apply for a home loan. Once 2014 is over, much of the youth in this category will finish their taxes by March and immediately apply for a home loan with proof of another year of stable income. Provided the credit history is good to excellent, Peoples Home Equity loan officers will seriously consider all applicants. Now is certainly the time to apply for a loan thanks to current mortgage rates.
Mortgage Rates
Mortgage rates will be of high focus as we pass into 2015, and People Home Equity expects higher rates next year. The Federal Reserve intends to interest rates soon as part of slowing growth in the country to hinder another economic bubble. As soon as the Federal Reserve raises interest rates, mortgage rates will immediately be raised among all lenders. Thus, many are eager to get a mortgage now before mortgage rates go up. For these anxious buyers, it’s essential they finish their 2014 taxes and apply for a home loan quickly; one can apply here at PeoplesHomeEquity.com
Home Prices
People Home Equity expects home prices to continue higher next year. In fact the lender does not expect to see much depreciation in values during the course of this winter. Real estate inventories are so low compared to rising demand that prices can go nowhere but up unless American’s lose their jobs again. Unemployment is expected to remain low throughout 2015 and continue lower, even after any initial rate hikes from the Fed.
To summarize: The combination of low unemployment, improved credit scores, relatively low mortgage rates with the expectation of a rate hike, and rising home prices will lead to a very active real estate environment in 2015.
Peoples Home Equity wishes everyone a wonderful holiday season and a Happy New Year. If in need of a mortgage this winter season, contact a Peoples Home Equity loan officer today at: 262-563-4026