With a new year comes new opportunities, and such is being said about the American housing market in 2015.
“As 2015 begins, hiring is strong and economic indicators are pointing up,” writes NPR in a recent article, adding that just six years ago millions of Americans were losing their jobs and homes. “Could this be the year when the housing market finally breaks out of its tepid recovery and takes off?”
NPR offers four reasons for optimism regarding the housing market: employers are hiring again; home prices rose 4.5% nationally between January to October; rents are high; and there are more incentives for first-time home buyers to act.
“Some young people enjoy renting, but a recent survey by Fannie Mae showed nine in 10 would prefer to own,” NPR says. “They have been held back by tight lending standards that have made it tough to get around their heavy student debts and light savings. But in December, Fannie Mae and Freddie Mac announced programs that would allow first-time buyers to get homes with down payments of just 3%, instead of 5%.”
But despite the good news, there is also one reason for concern: rising mortgage interest rates.
“That’s because the Federal Reserve, which has held down both short- and long-term interest rates since 2008, has been signaling a coming change,” writes NPR. “The Fed is expected to allow rates to drift up, probably starting this summer.”
Read the article here.
Written by Cassandra Dowell