2014: THE EMERGING PURCHASE MARKET

Compliments of:
Loan Officer Photo
Frank Joseph
Mortgage Loan Officer / CPA
NMLS ID: 305034
949.939.6896
Email me
Visit my website

 

2014: THE EMERGING PURCHASE MARKET

According to the November 2013 U.S. Economic and Housing Market Outlook released by Freddie Mac, 2014 will see the shift from a refinance-dominated mortgage market to the first purchase-dominated market the industry has seen since 2000. Additionally, the report predicts: 
Economic growth in the 2.5 – 3.0% range, more than a half percentage point better than projected for 2013, with unemployment falling below 7%
Interest rates are expected to rise gradually throughout 2014, with the 30-year fixed-rate mortgage ending the year near 5%
Affordability still strong in most markets. However, rising rates will hinder affordability in high-priced markets
Housing starts to rise to a pace of 1.15 million, which should help to create around 700,000 new jobs and quicken the pace of economic growth
Sales to rise about 5 – 6% in 2014 from 2013 levels
Continuing tight new home inventory in many markets, which will hamper new home sales
Home values will continue to rise but at a more moderate pace, around 5 – 6% annualized
Multifamily property will continue to be relatively attractive as compared with the first decade of the century, based on the Multifamily Investment Index

 

Frank Nothaft, Freddie Mac vice president and chief economist summarizes the rosy outlook, saying “With the close of 2013 will also come a major transition in the housing finance industry. We’re going to see the mortgage market dominated by purchase activity as the refinance share drops below 50%. And with mortgage rates rising, we’re also going to see the home-sales gain, as well as the impressive house-price growth begin to moderate to more sustainable levels.”

Please contact us  to help you sell your home and find the home of your dreams!  We specialize in Laguna Beach, Newport Beach, Dana Point, San Clemente and our inland coastal communities.

Make it a great day!

Jeff

evo logo with white boarder

Leave a Reply

Your email address will not be published. Required fields are marked *