At the start of 2019, there’s no disputing that the 2018 housing market had it’s fair share of ups and downs. What will happen in 2019?
This new year started out with surprisingly low mortgage rates making it the perfect time for homeowners to refinance and save money. What will happen the rest of 2019? Will the trends continue? Will rates drop even lower?
Here are our predictions:
Rates will continue to rise
We started off the year with interest rates near 6-month lows but consider that a gift. As the Fed continues to increase rates, the mortgage rates will probably end 2019 higher than current values.
It’ll be politics as usual
Interest rates, home prices, and the overall economy will continue to be driven by regulation and policies out of DC. Global trade tensions and stock market volatility will cause shifts in consumer sentiment.
Technological advances will continue to hit the real estate biz
Technology has disrupted travel, communication, and delivery but 2019 will be the breakout year for technology in the real estate and mortgage world. Companies and consumers will continue to embrace technology to remove friction in the home-buying process.
Things will get more expensive
Lower inventory, higher home prices, and rising interest rates will make it more expensive to buy a home in 2019. Affordability challenges are hitting all markets across the US.
It will all be about the need for speed
The average home closing takes anywhere from 40 to 50 days to complete. The industry as a whole has made a commitment to bring down the average closing time to less than 30 days!