Just wait until you see what’s happening in 2021!
2020 may have been the year of “unprecedented” everything, but when it comes to the housing market, 2021 already has it beat.
And we mean that in the best possible way. Let's take a look...
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House prices are rising at record rates. The Federal Housing Finance Agency's most recent House Price Index report showed an annual growth rate of 15.7% and monthly rate of 1.8% for April—both passing previous highs. For current owners, the changes mean higher home values and equity.
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Interest rates are back down again. After flirting with an upward trend early in the year, interest rates have come back down. Lower rates contribute to continuing affordability even as prices rise.
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New programs are opening more doors:
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The FHA paved the way to homeownership for many more student loan borrowers by changing the way student loan payments are counted when determining eligibility for federally insured mortgages.
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New programs coming online this summer are helping eligible lower income borrowers save money through refinancing by reducing costs and making it easier to qualify.
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Homeowners are accessing cash from equity and dropping mortgage insurance (MI or PMI). Even for those who already refinanced once, the combination of rising values and low rates is allowing homeowners to fund repairs or renovations; invest in second homes; pay for college tuition; or just follow their dreams.
All of this, and the year’s barely half-way over!
Do you have questions about what the 2021 housing market means for you or someone you know? Please reach out. The Experts at Emerald Home Loans are happy to help!
