We’re in the thick of the busy spring market, and we’re already seeing some emerging trends that will greatly impact the rest of the year. Steve DiMarco has been closely tracking the results so far, and he has early predictions to help you plan accordingly.
On Interest Rates
“Many experts predicted that interest rates would go up during the spring market; they were wrong again. The average conventional 30-year fixed rate interest rate is below four percent, and I don’t see that going up much anytime soon.”
“We’re in the best position we have ever been in to serve the flood of buyers. Our loan officers’ drawers are filled with pre-approvals; now we just need the inventory to get them to the next step. Business is good right now, but we need more sellers to get off the fence.”
On Millennials, First-Time Buyers
First-time buyers have big financial advantages right now. Credit markets are trying to pump liquidity into the marketplace, so they have really loosened up on those qualified buyers who may have had difficulty in the past. If you have a client who doesn’t have a 10 percent down payment, there are a number of Fannie and Freddie programs that can help. Additionally, the FHA has lowered the monthly mortgage insurance premium, making those monthly payments more manageable.
If you’d like more information about financing in your hyperlocal market, please speak with a Key Mortgage loan officer.