Fall brings changes from falling leaves to a new school year, change is always in the air this time of year. That said, according to Freddie Mac, it looks like the housing market should continue to stay strong and we’ll continue to see historically low-interest rates!
Learn more below in our seasonal market update, right here! If you have any questions about this report and information don’t hesitate to reach out to our team to see what we’re seeing right here in our backyard of West Michigan.
Historically Low-Interest Rates
Concern about future world economic growth and uncertainty around trade and monetary policy have put doward pressure on interest rates. AS of the first week of June, the U.S. weekly average 30-year fixed mortgage rate was 3.82%, the lowest since September 2017. Low mortgage rates along with a strong labor market will help housing markets post modest growth over the next year and a half. We expect refinance mortgage originations to receive a boost in 2019, increasing about 20% relative to 2018.
for Fall 2019
Freddie Mac forecasts the housing market should stay strong well into the fall. Their Chief Economist believes today’s low mortgage rates “will help boost sales,” making housing “a bright spot in the economy.” Indeed, the latest National Association of Realtors HOME survey says that 63% of Americans feel now is a good time to buy a home. 34% strongly believe this is true, and there’s “no sign of the optimism about home buying fading.” The National Association of Home Builders reported “solid household formations and attractive mortgage rates are contributing to a positive builder outlook.” as their builder confidence index rose, along with buyer traffic. With housing prices on the rise at roughly 7.11% per year in the Greater Grand Rapids Area, now is a fantastic time to buy OR sell.