Most experts agree- the U.S. housing market still has tons of opportunities for home buyers… but those opportunities won’t last forever. Especially with the rate increase announced by the Fed this week, it makes more sense to buy now rather than continue renting\u00a0and miss out on more\u00a0growth.<\/p>\n
Despite what your uncle may have told you, the market still hasn\u2019t reached its peak. Home prices are still 19% lower than before the recession. At the 5% growth rate we\u2019ve seen over the last few years, home values won\u2019t return to their pre-recession highs until the summer of 2017.<\/p>\n
Housing markets are hot across the U.S. due to low interest rates and a healthy economy. If you\u2019re renting right now, you\u2019re throwing away money because until the interest rates go up, borrowing the money to purchase a home is cheap.<\/p>\n
http:\/\/www.cnbc.com\/2015\/12\/17\/the-housing-market-hasnt-peaked-yet-commentary.html<\/a><\/p>\n <\/p>\n According to the Nationwide Economics Health of Housing report<\/a>, the housing market is very healthy right now, and it\u2019s extremely unlikely to experience a downturn in 2016. This is primarily due to low unemployment numbers, which have decreased in 90% of the country\u2019s metro areas in the last year. Moreover, the fundamental stats used to analyze the housing market shows the strongest numbers in the last 10 years.<\/p>\n The report also indicated Nationwide’s Leading Index of Healthy Housing Markets (LIHHM) to help indicate the market\u2019s health. It shows a national value of 108.2 for Q4 2015, which is a great score.<\/p>\n http:\/\/www.themreport.com\/news\/data\/12-17-2015\/employment-numbers-drive-housing-market-health<\/a><\/p>\n <\/p>\n During the recession, it was nearly impossible to get a decent mortgage without a lot of cash in the bank and good credit. The standards have eased quite a bit since then, but most lenders expect the trend to continue next year.<\/p>\n Fannie Mae conducted a Mortgage Lender Sentiment Survey for 2015<\/a>, and the vast majority of lenders think the standards will ease. One major reason is the difficulty some first-time home buyers are experiencing right now. Home affordability in 2016 is expected to be more difficult for everyone though, due to increasing mortgage rates and home values.<\/p>\n http:\/\/www.themreport.com\/news\/data\/12-17-2015\/mortgage-lenders-predict-more-easing-of-credit-standards-in-2016<\/a><\/p>\n Prior to Wednesday, the interest rate range was from 0.0% to 0.25%. As of Wednesday, that changed to 0.25% to 0.50%. That isn\u2019t a major change, but it will still affect millions of home buyers and investors. The hike wasn\u2019t unexpected, as almost everyone agrees that the economy is the best it\u2019s been since the recession.<\/p>\n During her interview, Federal chief Janet Yellen stated \u201cthere are pressures on some sectors of the economy, particularly manufacturing, and the energy sector…but the underlying health of the U.S. economy I consider to be quite sound.”<\/p>\n Many also expect that even though this is the first rate hike in almost 10 years, there are more to come in 2016.<\/p>\nAlmost Zero Chance of a Market Downturn<\/h2>\n
Credit Lenders Expect to See Credit Standards Lower in 2016<\/h2>\n
Federal Reserve Hikes Interest Rates<\/h2>\n