December Housing News
As you consider your plans for 2016, let’s take a look at what the November real estate market reports tell us about this past month and what we can expect in the year to come.
A new Fannie Mae index, the Home Purchase Sentiment Index, is climbing nicely, which tells us that consumer confidence in the market is growing. People are feeling strongly about where the market is headed.
As people consider strong consumer confidence, they may begin to think about the housing bubble of 2008 and wonder if a similar housing bubble could be forming. It’s a fear for many of us who were in the real estate market at that time. However, we can assure you that a housing bubble is not forming. While the Case Schiller numbers are above last year, they are leveling out. We are maintaining the increases gained this year, likely because while demand is high, inventory is still on the low side.
Existing home sales have been higher every month in 2015 than they were as compared to the same month in 2014, and 2016 is expected to be just as strong if not stronger as inventory starts to grow.
There has been news about a slight fall in new home sales in November. The November 2015 numbers are slightly lower than November of 2014. However, there is expected to be a big rush in new home construction in 2016.
As you consider your plans for 2016, you may be thinking about your mortgage. For first time home-buyers, is this still a good time to get your first mortgage? For current home owners, is this a good time to sell or possibly refinance? Yes. Mortgage rates are struggling to find their place. 30-year fixed rate mortgages jumped up. Projections over the next four quarters – expected to go up about ¾ of a point. Secure a lower rate now before the rates climb higher.
We look forward to sharing a wrap-up of 2015 and projections for 2016 in our January blog post.