Numerous investors and analysts expect 2015 to be a rebounding year for the housing marketing. This is apparent in a report from the National Association of Home Builders released in February 2015, which said the housing market for those 55 and older in single-family homes grew overall in 2014.
In January, the housing market was much more successful when compared to the same time a year ago. The early start to a successful month of homebuying is likely a good indication that 2015 will have more consumers confident in the housing market altogether, The Wall Street Journal proposed.
Home equity helping consumer confidence
The market for 55 and up single-family homes had a helping hand in a progressive increase in home equity throughout 2014, the NAHB report stated. The demand for older homes has decreased because of several people having difficulty selling existing homes.
According to the Journal, some experts believe they are witnessing a growing period in the market from mid-December into January, which will create a successful and more confident year in 2015.
Mortgage rates on the decline
A new report from Bankrate, Inc., explained mortgage rates in the U.S. have hit their lowest levels since May 2013, and these forecasted rates are to remain calm. The report said that the average 30-year fixed mortgage rate hovered around 4.43 percent just one year ago, and a monthly payment of $1,005.07 would have applied for a $200,000 loan.
However, the average was at 3.80 percent for the week ending on Jan. 30, which would make the same loan come in at a monthly payment of $931.91, Bankrate reported. The 15-year fixed mortgage rate was 3.12 percent, which is barely down from the previous week.
Larry Nicholson, CEO of Ryland Group Inc., said he felt really good about the housing market in January and how people are reacting to the increased buying and lower mortgage rates, the Journal reported. The CEO added that he saw a lot more positives before the Super Bowl than he remembers in the past and by "quite a few."
While many experts feel the market is shifting, first-time or veteran homebuyers should contact one of our expert financial advisors to get on the right path toward a new home.
For more information about smart ways to manage your finances, contact Landmark Bank.
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