What's Ahead in 2016?
Predicting the future is no easy task. But based on what occurred in 2015, we can guess how 2016 will shape up in the mortgage and housing industries.
Rates will rise – The rates have been at low levels and are expected to take a more “natural” role in the economy. The Federal Reserve held the rates at these low levels to help give the economy a boost since the crash. But now with the economy showing signs of steady recovery, the next logical move would be to let rates once again fluctuate with the economy and provide further stability to the markets.
Millennials – Millennials are expected to join the ranks of others looking to purchase property. While many are still recovering from the economic crisis as well, the rise in rent is pushing many out of being about to afford renting any longer. This paired with low down payment options and new mortgage programs could find the market inundated with many younger buyers for the first time in years.
Expensive rent – As previously mentioned, the rate of rent is anticipated to increase yet again with many areas and properties well exceeding the median income levels in the area. With the rise in rent, many renters will find themselves spending close to 40% of their monthly income on this expense alone, and in some cases more.
Steady inventory – While obviously no one can be certain about anything, experts are hoping to see steady inventory on the housing market preventing a significant lean in either direction; a seller’s market or a buyer’s market. Steady inventory could help level out home prices and allow new buyers into the market.
New programs – 2016 will inevitably produce more loan programs designed to help buyers in the market.
Presidential Election – One of the most interesting items the year will bring is undoubtedly the 2016 Presidential Elections in November. Not only will the election of a new President shake up Congree, it could potentially begin to define how the market will begin shifting in the coming years under new reign.
What do you think 2016 will bring in the mortgage and housing landscape?