U.S. Home Sales
Last year, U.S. home sales reached their highest level in more than a decade, and demand for homes continues to grow. At the beginning of the 2018, experts forecast home sales will increase by about 2 percent during the year. This expectation of increase placed more pressure on a housing market that already had shrinking inventory and an abundance of eager home buyers. The imbalance between supply and demand is acutely felt in South Florida, where home-buyers are frustrated by a shortage of listings. Furthermore, homes in good condition that are priced fairly, sell quickly due to fierce competition.
Here is a graph of monthly home sales over the past 20 years:
U.S. Mortgage Interest Rates
Mortgage rates were expected to increase in 2018 but this increase has occurred very quickly. In the first 60 days of the year, mortgage rates have already reached experts’ predictions made for the entire year. In fact, most well-qualified mortgage applicants are looking at rates between 4.5% and 4.75% as of March 2018. Economic expansion is leading us to a near-full recovery stage from the 2008 housing market breakdown. Despite mortgage rate increases, the current rate you could get today is still historically low.
Here is a graph of mortgage rates over the past 20 years:
If you are looking to purchase a home within the next 3 to 18 months, you should establish a relationship with a mortgage broker to help you through the mortgage process. Doing so can give you an edge over other buyers.
Benefits of a mortgage broker
As the housing market becomes tighter, it’s important to have started the mortgage process when you begin shopping for a home. Doing so will give you several advantages in a competitive market. Here are some benefits of using a mortgage broker:
- A mortgage broker has the industry knowledge to find the best option for your financial situation. By reviewing your credit history, income-to-debt ratio, and other qualifications, a mortgage broker can improve the likelihood of securing a better mortgage rate or loan term.
- A mortgage broker can provide you with a pre-approval letter, which makes you a more attractive buyer during the bidding process. A pre-approval letter confirms you are qualified for a home loan and approves a specific loan amount. Getting pre-approved for a mortgage lets a seller know you are a serious buyer who can go through with the sale.
- A mortgage broker is well-versed in the mortgage process. By performing the legwork for you, a mortgage broker can save you time. Time is of the essence in a tight housing market.
You don’t know when you will find the home of your dreams, so you need to be prepared. Get in touch with us and lets talk about your objectives, we will work together to help you through the mortgage process and ensure you are ready to act when that moment arrives.