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Market Factors
March 18th, 2015 9:20 AM


According to the latest Realtor's Magazine, there are 5 major factors that will influence the mortgage and real estate markets this year:

1.  Mortgage rates should become more firm.  While volatility could push mortgage rates lower, any rate declines will likely be driven by any significant new global issues.  The Federal Reserve will begin to raise short-term interest rates mid-year,  but affecting mainly ARMs.

2.  The Federal Reserve will step back.  Last fall saw an end to the Fed's direct involvement in manipulating long-term interest and mortgage rates.  They may begin raising rates this year, but it will begin with small, cautious steps.

3.  Credit standards should ease.  Lenders are finally easing credit requirements for potential mortgage borrowers.  The Federal Housing Finance Agency finally provided greater clarity to lenders as to the conditions under which they would be required to repurchase a failed loan.

4.  The FHA may reduce annual mortgage insurance premiums.  The FHA is being directed by the government to reduce annual mortgage premiums by 50 basis points, although it is still not official.

5.  Home equity borrowing may increase.  With home prices on the rise, more homeowners will be able to once again use some of their home equity, which has not happened since the early 2000's. 

Overall, buyer confidence is on the rise and with an increase in non-distressed inventory, this year is headed in a solid positive direction. 


Posted in:Real Estate
Posted by Allen Doeringer on March 18th, 2015 9:20 AMPost a Comment

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