12 Jan What Does 2015 Housing Look Like?

According to CNBC, the housing market has finally turned a corner. With the potential for interest rates to move higher, there is much to expect in 2015.  Here are some highlights from their 2015 predictions.

Refi – Final Call

The window is starting to close for refinancing; anyone with a higher rate who has not yet refinanced, like homeowners who took out an adjustable-rate mortgage, should take action now.

The time for sitting on the sidelines is up – buyers should consider how rising interest rates could impact their monthly payments.

New Down Payment Programs

Excellent news! In early December, Fannie Mae and Freddie Mac announced new down payment programs that allow first-time buyers with good credit to qualify for a 3-percent down payment instead of 5 percent as well as a fixed-rate mortgage.

Borrowers must meet first-time buyer requirements and they must reside in the home, but overall this will allow more first-time buyers to enter the market.

Millennials – Time to Buy at Last

2015 is a year when millennials are likely to become buyers. Rising rents, available housing stock and life changes such as marriage and children will mean that it will make more sense for millennials to become first-time homeowners.

The job market is stronger now; monthly rent in many cities can often be more than a monthly mortgage payment, making owning more appealing than renting.

To read all of CNBC’s outlook, click here.

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