The national average for a conventional 30-year fixed-rate mortgage last week was 3.69 percent... and many economists believe now that 2015 will produce the highest number of housing sales since 2007. In tandem, they expect rising housing prices assuring almost instant equity if you purchase now.
Here are the main reasons why they are so bullish on the 2015 real estate market:
1. Jobs have grown at a rate of 250,000 per month for about a year now... with very strong job growth in the first-time homebuyer age group.
2. Close to 80 percent of metropolitan real estate markets are now affordable for the average family income to purchase a median priced home.
3. Rents have risen by about 11 percent over the last three years and are expected to keep going up... which may be prompting renters to become homeowners.
4. Lenders have begun to relax their overly stringent lending requirements... just enough to make it possible for more qualified buyers to enter the market.
5. Low-income and first-time buyers can now get a conforming loan with as little as three percent down from Fannie Mae and Freddie Mac.
6. Government-guaranteed loans are also available with as little as zero down through the Veterans Administration for veterans and active-duty military.
7. The Federal Housing Administration has programs as low as 3.5 percent down... but all FHA loans require Private Mortgage Insurance for the life of the loan.
8. You can get an FHA loan with a credit score as low as 580... if you can provide the 3.5 percent down payment.
9. A credit score of 650 or above will enable you to qualify for a Fannie or Freddie conforming loan... if other variables in your financials are in order.
10. Lenders are doing again loans that don't require an income verification... if the customer has a large enough portfolio of liquid assets.
All of this is promising to generate a very strong real estate market for 2015...
Comments (1)Subscribe to CommentsComment