What is the Housing Market Outlook After The Feds Cut Interest Rates

Housing Market Outlook After The Feds Cut Interest Rates

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On Housing Market Outlook After The Feds Cut Interest Rates Was PUBLISHED On August 7th, 2019

Housing prices have been increasing for the past three years due to inventory shortage.

In this article, we will cover and discuss the housing market outlook after the Feds cut interest rates.

Competition On Housing Market Outlook

Competition in the housing market was expected to slow down this year until the news of the Fed interest rate cuts.

  • In April 2019, listings on the national MLS increased substantially and home prices stabilized
  • Home bidding wars on purchases seemed to cool down a bit and not too many buyers offered higher than listing price on homes
  • Then mortgage rates have started sliding downwards
  • Mortgage Rates have been sliding since the start of 2019
  • Federal Reserve Board Chairman Jerome Powell announced the Feds will not increase interest rates this year
  • Then the Feds decided to cut interest rates
  • Interest rates have not been cut by the Feds in almost a decade
  • The Fed Chairman Jerome Powell hinted that the Feds may be cutting rates in the coming months and into 2020
  • This news drove mortgage rates below 4.0%
  • All signs signal mortgage rates will be heading lower
  • Both the home purchase and refinance markets are exploding to record levels

Most mortgage lenders are behind in turnaround times. Average closing dates are now averaging 40 days versus 29 days 60 days ago.

Housing Inventory Shortage Is Reaching Historic Levels

Homebuilders nationwide are thriving. They are getting homes sold out prior to even breaking ground. Home prices are increasing in most parts of the country. Supply is scarce and many industry experts are expecting housing inventory to hit a new record low.

According to Alex Carlucci, a senior vice president at Gustan Cho Associates and housing market analyst, he said the following:

Demand For Homes And Housing Market Outlook

what is are Demand For Homes And Housing Market Outlook

Many millennials are buying their first homes. Housing Market Outlook looks promising for first time home buyers. Many are seeking to purchase homes in the suburbs. The suburban markets cannot keep up with demand. Many elderly homeowners are selling their homes and downsizing. The economy is doing great. The lowest numbers of unemployment data have been registered in the history of the United States. Many have accumulated wealth with the increase of their 401k due to the record high stock markets. Many folks are buying second and/or vacation homes. Many lenders like Gustan Cho Associates have launched Non-QM and Alternative Financing Loan Programs. Bank Statement Loans for self-employed borrowers are making self-employed borrowers qualify for home loans.

Alex Carlucci adds the following statement about the 2019/2020 Housing Market Outlook:

For more information about the content of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com.

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