Guest Post by Bill T. Daniels, Certified Mortgage Coach
The Federal Reserve's purchases of mortgage-backed securities kept interest rates near historic lows for much of last year. But within a week of the program's expiration, rates for 30-year fixed-rate mortgages jumped from 5.04 percent to 5.31. Now many analysts are predicting rates will likely rise as high as 6 percent by early next year. Here are five other housing trends to watch:
- Distressed properties will keep prices under pressure.
- Big homes are lagging small ones in the recovery.
- Financing for condominiums, second homes, and jumbo loans are tough to get.
- Buyers, rushing to beat the tax-credit deadline, will set off a flurry of spring sales.
- Going green this year can save you money.
According to a national survey conducted by Fannie Mae, 64% of Americans think now is a good time to buy a house. The survey, designed to gauge the public's confidence in homeownership, household finances, the U.S. housing finance system, and the economy, polled 3,000 homeowners and renters between December 2009 and January 2010. Some key findings:
- 80% percent believe homeownership is important to the economy, but feel it has become more difficult to buy a home.
- Nearly two-thirds think owning is preferable to renting.
- A majority of mortgage borrowers are satisfied with their current mortgage, but those with 30-year fixed-rate mortgages are more satisfied than those with other types of mortgages.
- 75% of renters believe owning makes more sense and is a good investment over the long term.
- 88% believe it isn't acceptable for people to stop paying on an underwater mortgage.
- 44% expect their financial situation to improve in the next year.
Bill T. Daniels, Certified Mortgage Coach, offers lending consultations and strategies for his clients and is committed to helping them reduce their debt exposure while maximizing the equity in their home.
Thanks for a awesome post and interesting comments.
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