According to the Mortgage Bankers Association, next year will be full of home buying opportunities, especially when compared to the past few decades of mortgage history. Three factors in particular will make the year’s housing market a great time for the nation’s current and potential homebuyers. Let’s take a closer look at next year’s mortgage rates, demographics, and homebuyer sentiment.
- Mortgage Rates: Although mortgage rates are slowly rising from their record lows they will remain lower than the past decade of 30-year fixed mortgage rates. In fact, according to the chart below, these historically lower mortgage rates provide an ideal opportunity to buy a home—and in 2017’s growing economy, we can only expect these opportunities to grow. Of course, it’s important to remember that the economy always has risk, so make sure to discuss the current rates with your local lender before locking in a number.
- Demographics: As shown in the PEW Research Center’s population projection, millennials have now outgrown the baby boom generation. This means a younger audience now dominates the housing market, and demand is only expected to grow as these millennials age. In fact, by 2050, this younger generation will create a high, steady demand for housing units throughout the country.
- Home buying sentiment: With more millennials entering the housing market, economists predict a spike in home buying sentiment next year. More specifically, 90% of millennial homebuyers reported wanting to own a home in the near future in 2014, when the housing market was not nearly as strong. Almost three years later, experts expect to see these potential homebuyers finally make their homebuying dreams come true.
With lower mortgage rates (historically speaking), shifting demographics, and high home buying sentiment, 2017 is expected to be a great year for the housing market. For more information about the housing industry, or to learn more about home financing, contact one of our mortgage specialists today.