Wednesday, August 28, 2024 / by Dick Keenan
As we look ahead to 2025, it’s essential to understand what experts are predicting for the housing market. Whether you’re considering buying or selling a home next year, having a clear understanding of the projected trends can help you make well-informed decisions about your real estate plans.
Here’s a closer look at the latest forecasts for mortgage rates, home sales, and home prices in 2025.
Mortgage Rates Expected To Gradually Decline
Mortgage rates are a key factor in the housing market, influencing affordability for buyers and overall market activity. According to forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and Wells Fargo, mortgage rates are anticipated to decrease slightly throughout 2025.
This expected decline in mortgage rates is largely attributed to the easing of inflation and a modest increase in unemployment rates—indicators of a strong but slowing economy. Many experts b. ...
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real estate, keller williams, central coast, selling a home, home purchase, home ownership, housing affordability, housing market update, real estate market update, market update
Wednesday, August 28, 2024 / by Dick Keenan
You’ve probably heard the saying: "Don’t believe everything you hear." This advice rings especially true when it comes to today’s housing market. With so much misinformation floating around, it’s more important than ever to rely on accurate, research-based information, especially if you’re thinking about buying or selling a home.
By partnering with a knowledgeable real estate agent, you can cut through the noise and get the facts. Here are some of the most common housing market myths—and the reality behind them.
1. “I’ll Get a Better Deal Once Prices Crash”
There’s a popular belief that home prices are on the verge of crashing, and if you wait, you’ll score a great deal. However, the data tells a different story. While home prices can vary by location, there’s no indication that a crash is on the horizon.
Back in 2008, a significant oversupply of homes led to a dramatic drop in prices. Today, however, w. ...
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real estate, home buyer, home purchase, selling a home, realtor, home ownership, first time home buyer, low rates
Wednesday, August 28, 2024 / by Dick Keenan
In recent years, a significant shift in wealth distribution between generations has taken place, known as the Great Wealth Transfer.
Traditionally, wealth passed from one generation to the next in smaller increments, often limited to modest inheritances or family savings. But today, the scale of this transfer has grown dramatically. As highlighted in a recent Bankrate article:
"The largest wealth transfer in history is set to occur over the next 20 years, with Baby Boomers passing down an estimated $84 trillion to Gen X and millennials. If managed wisely, this massive shift could greatly enhance Americans' financial security and overall wealth." As Baby Boomers retire, sell businesses, or downsize their homes, they are transferring significant assets to younger generations. This massive shift is expected to create a ripple effect that will shape the economy for decades to come. The following graph, based on data from Merrill and Cerulli Associates, illustrates the enormous scale . ...
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Wednesday, August 28, 2024 / by Dick Keenan
When you're considering buying a home, your credit score plays a crucial role. Think of it as your financial report card—lenders use it to determine if you qualify for a mortgage and which loan options might be available to you. As the Mortgage Report explains:
"Good credit scores indicate to lenders that you have a history of responsibly managing your debts. The higher your score, the better your chances of securing a mortgage." However, many buyers tend to overestimate the minimum credit score required to buy a home. According to a report from Fannie Mae, only 32% of consumers accurately understand what lenders typically require. This means nearly two-thirds of people are unsure.
To give you a general idea, Experian offers some guidance:
“The minimum credit score needed to buy a house can range from 500 to 700, depending on the type of mortgage loan and the lender. For a conventional mortgage, most lenders require a minimum credit score of 620.” In other wo. ...
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home buyer, home purchase, home ownership, pre approval, pre qualified
Wednesday, August 28, 2024 / by Dick Keenan
In the past few years, many people have found it challenging to buy a home due to affordability issues. While it's still tough out there, there are signs that things might be getting a bit easier, with potential for further improvement as the year progresses. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), puts it this way:
“Housing affordability is improving ever so modestly, but it is moving in the right direction.”
Let's take a closer look at the three key factors that influence home affordability: mortgage rates, home prices, and wages.
1. Mortgage Rates
Mortgage rates have been quite volatile this year, fluctuating between the mid-6% to low 7% range. However, there's some positive news. Data from Freddie Mac shows that since May, rates have generally been on a downward trend.
This improvement in mortgage rates is partly due to recent economic, employment, and inflation data. While we can expect some ongoing fluctuations, expe. ...
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