Good News For Housing Trends in 2015

Paperwork at home2015 Housing Trends

The increasing economy is showing great signs for homebuyers. Many millennials are expected to start looking for their first home in the coming year, with rents rising much faster than incomes. There are many different housing trends that are helping to shape the housing market for the year, including:

  • Loose lending standards – the mortgage giants Freddie Mac and Fannie Mae have been putting new lending guidelines in place that allows buyers to qualify for a mortgage with only a 3 percent down payment. With a strengthening job market, many millennials are jumping into the housing market, looking to buy their first house.
  • More homes – to help accommodate the entry-level buyers, homebuilders are increasing their production of smaller, more affordable homes. Many homebuilders are starting to build “no-frills” homes that will be listed around half the price of what their typical builds cost.
  • More affordable prices – with an increase in the homes that are available, some of the pressure of home prices will be released, which will make even the most sought after areas affordable. Institutional investors are also expected to relax on their home buying, making more properties available, leading to more affordable price tags.
  • Eventual increased mortgage rates – almost all experts agree that mortgage rates will rise in 2015, but not by much. Buyers who are able to get into a home during the beginning of the year will benefit from lower mortgage rates, saving them thousands of dollars over the life of the loan.

When you have found the perfect house to move into, contact The Insurance Shop in White Bear Lake, Minnesota for all your homeowner’s insurance needs. We will work with you to ensure that you have the right amount of home insurance coverage to provide protection for your new home.