Your Official Mid-Year Mortgage and Homebuying Trend Update
2019 is almost halfway over, and if you’re still planning to buy a home before the year ends, it’s important to be aware of current trends in the real estate and mortgage lending markets so you are prepared when the time comes to buy a home. In the beginning of 2019, we saw a few trends that would help ensure a great value on your perfect home. As 2019 progresses, there are some new emerging home lending trends a future buyer should be aware of.
Mortgage Rates have Dropped Since the Beginning of 2019
In the beginning of 2019, rates were at an average of 4.5%. As of April, the average rate for a 30-year fixed home loan was 4.2%. The slight decrease in rates may result in better home sales throughout the remainder of the year. This decrease is resulting in a more accessible homebuying marketplace. Experts are also predicting that mortgage rates will remain below 5%, on average, into 2020. This means that the future is looking bright for those interested in purchasing a home during the remainder of 2019.
Millennial, First-Time Buyers are Dominating the Market
Recently, first-time buyers have shared about 60% of the market. Much of the growth in home sales in the recent years has come from first-time buyers. Millennial buyers are starting to ditch their rental apartments in favor of home ownership so that they can begin to raise families. The recent ease of lending standards has assisted first-time buyers in making the leap to home ownership, with average credit score requirements taking a slip. More millennial home buyers may mean more competition for a single-family, suburban dream home. Those who are house hunting should know exactly what they need in a home before searching and should also consider hiring industry professionals to make the process as smooth as possible.
New Technology Continues to Play an Integral Role
It was predicted in the beginning of 2019 that new and innovative technology would prove to be beneficial for homebuyers trying to navigate the real estate and mortgage industry. Most of the new tech has been designed with the homebuyer in mind to ensure the lending experience is smooth for all consumers. As 2019 has progressed, the incorporation of new technology has added convenience to the loan process and reduced application approval time. It has also had the impact of increasing security with additional precautions surrounding personal information in online portals . New technology will continue to make the transition to homeowner more efficient and secure for years to come.
With trends and technology constantly changing throughout the year, it’s important to choose a mortgage lender with the knowledge, skills and experience to help you navigate throughout the evolving homebuyer landscape and answer any questions you may have.
If you would like to discuss how mortgage and homebuying trends can impact your ability to buy a home in 2019, reach out to our team of professionals. We’re ready to answer any questions you may have about the journey to homeownership. Contact us today!