Housing Market Strong Due To Declining Mortgage Interest Rates

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.

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

According to Massimo Ressa, Chief Executive Officer at Gustan Cho Associates at Loan Cabin Inc., a national direct lender, he issued the following statement:

The last three months have been kind to potential homebuyers. While mortgage rates increased throughout most of 2018, they began to trend downward in December and have continued to fall since then. All the while, average household income has trended up, boosting house-buying power. These lower rates don’t just increase purchasing for buyers, but they also encourage existing homeowners to join the market. These owners were “rate locked-in” when mortgage rates were rising. Now that they’ve dropped, homeowners might consider purchasing a new house at a lower rate, creating more housing inventory in the process. There is also the Millennial factor here to consider. Many Millennials have been priced out the market historically, and today’s lower rates are inching the door to homeownership back open. The increase in house-buying power directly contributed to a gain of nearly 131,000 potential home sales in the last three months, by far the strongest driver of market potential. An extra boost in new construction is also likely to help the housing market as we head further into 2019. The recent increase in housing starts means home builders are pushing through new construction projects, which should help alleviate the supply shortage in the future,” he said. The net effect? We expect the spring home-buying season to be stronger than anticipated just a few months ago.

Alternative NON-QM Loan Programs

Adding fuel to the fire is the launch of many nonqm 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 nonqm mortgages. Gustan Cho Associates at Loan Cabin Inc. 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 262-716-8151 or text us for faster response. Or email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays.

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