Our Housing and Mortgage Trends for 2018
Expect Home Building to Continue
In November of 2017, single-family housing hit a 10-year high. With the economy continuing to grow and the labor market firing on all cylinders, builders will continue to try and meet the robust demand in 2018.
Expect Home Prices to Rise or Stabilize
Although real estate prices are hyper-local, according to a new report from CoreLogic, home prices in 2017, jumped 7%. We continue to see lower supply and higher demand which will cause prices to increase and eventually stabilize once the demand is met but do not anticipate a decrease.
ARMs May Lose Their Strength
As the Fed continues to increase short-term interest rates and long-term interest rates remain lower, the spread between a 5/1 ARM and 30 Year Fixed moved to its lowest level since 2009. As the spread continues to shrink, the risk of an ARM may not seem as beneficial.
Finally Using That Equity in Your Home
As home values continue to increase, taking out the equity in your home through a cash-out refinance can help put that money to work. Tapping into that equity can be used to pay for a home renovation, pay off some high-interest credit card debt, pay for college, or make other investments.
Closing in less than 30 days!
The common misconception is that it takes 45 to 60 days to close on a home loan. That may have been the case 5 or 10 years ago but as lenders and underwriters embrace technology and automation, expect to close a loan in less than 30 days!