In the past month, investors sold shares in the Stock market and re-allocated money to other investments. The upside to this Stock selloff? Lower interest rates for the housing market—in fact, rates reached their lowest levels in over 17 months. Lower rates seem to be the only bright side to the housing market recently, which is experiencing a drop in demand due to higher home prices, higher mortgage insurance costs, and fewer fall listings.
The Home buying Landscape Evolves According to a report by Freddie Mac, housing demand in the coming years will be driven by the Hispanic population. This group grew by 59 percent between 2000 and 2013, and is expected to double to almost 128 million in the U.S. by the year 2060! Investment is also coming from overseas, with foreign interest in the U.S. housing market up 35 percent from April 2013 to March 2014, and still growing. According to National Association of REALTORS®, 7 percent of total existing home sales are made up of foreigners.
Altogether, forecasts for housing remain mixed for 2015. While banking analysts lower expectations for home values and home construction, others see this as good news for home prices. The Bottom Line Rates remain at some of their lowest levels in over a year, and are highly attractive for a home purchase or home loan refinance.