This BLOG On Housing Numbers Increase Despite Higher Mortgage Rates Was Written By Ron Granado Contributing Editor For Gustan Cho Associates
The housing numbers for December 2017 were a 14.5% improvement month over month from November 2016 according to the National Association of Realtors.
This is the largest jump in one month since they began recording housing data numbers. Three factors that may be playing a role to housing numbers increase are the following:
- Mortgage interest rates are perceived to be rising and to continue rising over the coming months and years ahead
- Homebuyers who were sitting on the sidelines are finally making a decision when it comes to buying a home and are pulling the trigger
- This seemed to be the biggest reason for housing numbers increase
- The second reason of the sharp increase in housing numbers increase is that the weather is much more milder than it has been most winters nationally in the month kept a market headed for slow down going in areas where seasonal changes tend to slow business down
- The third main reason for the sharp increasing of housing starts is it was 2 months into TRID (Dodd-Frank) mortgage regulations changes
- Businesses in the mortgage lending arena are becoming accustomed to the change
- Hence more likely to push files to close faster
- Some of these files may have been placed right at the time of the TRID mortgage regulations changes and we’re finally getting to the closing table
In this article, we will discuss and cover Housing Numbers Increase Despite Higher Mortgage Rates.
Housing Numbers Increase Boosts Mortgage Loan Applications
Whatever the reason may be, housing sales and mortgage loan applications were substantially up and is expected to continue some upward trend for the rest of 2018.
- If millennials can buy and replace baby boomers leaving the market, housing inventory will continue to tighten and prices will go up
- The growing immigration population in the United States, which has larger family sizes, are also bringing a welcome replacement to an aging population in its distribution phase of life
- 2018 is the record year for the most baby boomers hitting the age of 59, which is the year they must begin withdrawing from their 401K
- Market re-allocation should correct the market slightly
- If past behaviors hold true, they will shift to bonds and money markets for safer investments
Mortgage interest rates should benefit and hold steady for the 1st quarter of 2019.
About The Author
Special thanks to our author, Ron Granado, a veteran title expert who has extensive knowledge in all areas of lending, real estate, and regulations. Mr. Ronald Granado has a national reputation among real estate attorneys, real estate brokers, mortgage professionals, and consumers throughout the United States. Gustan Cho Associates Mortgage News is blessed to have Ron Granado as our guest writer and look forward to his invaluable articles and his opinions. Stay tuned.
Ron Granado
Account Executive | Plymouth Title Guaranty Corp
1301 W. 22nd Street | Ste 505 | Oak Brook, IL 60523
