This BLOG On Housing Market Strong Due To Declining Mortgage Interest Rates Was PUBLISHED On March 25th, 2019
Many economists and housing experts are expecting Housing Market Strong in 2019 due to the FED announcing of an interest rate freeze for the remaining year.
- In 2018, mortgage rates shot up to an all-time high since the 2008 Housing Bubble Crash
- The Federal Reserve Board raised interest rates quarter after quarter in 2018
- Due to FED raising interest rates, it had an impact on mortgage rates
- With the highest mortgage rates since 2008, we had a housing market strong due to the demand for housing
- With a strong housing market, home prices kept on increasing that both FHFA and HUD had to raise conventional and FHA Loan Limits
- Both FHFA and HUD raised conventional and FHA Loan Limits for three years in a row
- FHFA raised conforming loan limits for 2019 to $484,350
- HUD raised FHA Loan Limits for 2019 to $314,827
- Mortgage rates have been sliding since the beginning of the year
- Several weeks ago, the FED announced they will not raise interest rates for the 1st Quarter 2019
On March 20th, 2019, mortgage rates hit a 13 month low. In this blog, we will discuss the housing market strong due to declining mortgage rates in 2019.
Reasoning For Housing Market Strong For 2019
Reason for expected housing market strong for 2019 is due to decreasing mortgage rates.
- Other factors such as increasing wages and the great economy is expected to fuel home buyers to pull the trigger in 2019
- The Dow Jones Industrial Average is approaching 26,000
- Consumer’s 401k’s are at an all-time high
- Using 401k for home purchase down payment and closing costs is allowed
- Many industry experts and economists are expecting a strong housing market than originally expected
- Mortgage interest rates have been steadily declining since the beginning of the year
Mortgage rates hit a 13 month low to 4.23%. It is expected to go lower in the weeks and months to come.
What Experts Are Saying About The 2019 Housing Market
Alternative NON-QM Loan Programs
Adding fuel to the fire is the launch of many non-qm loan programs. Home buyers no longer have to wait the mandatory waiting period after bankruptcy and/or foreclosure. There is no waiting period after bankruptcy and/or housing event to qualify for home loans. This creates more demand for housing. Many home buyers who do not qualify for government and conventional loans can now qualify for home purchase loans with non-qm mortgages. Gustan Cho Associates at NEXA Mortgage, LLC launched the bank statement loan program for self-employed borrowers. There are no income tax returns required. The past 12 months of bank deposits are averaged to derive qualified income. There is no loan limits. There is no private mortgage insurance requirements. For more information in qualifying for a mortgage with a direct lender with no overlays on government and conforming loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.
