With the U.S. mortgage market hitting rock bottom in 2014, it looks like the worst is over. According to Mark Zandi, chief economists at Fannie Mae and Moody’s Analytics Inc., many in the housing industry have lots to look forward to this year. A BloombergBusinessweek article quotes him as saying, “Mortgage bankers will feel a lot better by the end of the year than they do right now. It will be a long, slow climb out, but better days are ahead.”
Due to wage growth, borrowers will likely have an easier time qualifying for mortgages. They’ll have the financial means to make a big purchase, such as a home, as well as the confidence to do so. Also, it looks like many first-time buyers may start coming out of the woodwork. According to Douglas Duncan, the chief economist at Fannie Mae, a recent rule-change now states that first-time buyers can make a down payment for as low as 3 percent.
Beyond that, it is estimated that home loans and home purchase mortgages will likely rise about 6 percent over last year, with refinancing loans falling to 7.1 percent. Interested in learning more about this upward trend? Contact the experts at Texas Secure Title Company, or read more of Kathleen M. Howley’s article “U.S. Home Lending Set to Bounce Back in 2015 After Slump” at www.bussinessweek.com.