2014 Real Estate Predictions
Last week Zillow came out with 4 predictions: US Home Values will Rise 3%, Mortgage Rates will reach 5% by the end of the year, it will be easier for borrowers to get a mortgage, and home ownership rates will fall to their lowest point in nearly two decades. For the most part, I agree with them, however I think the new lending rules coming in 2014 make it difficult to predict whether it will be easier or tougher to get a mortgage, so Im staying away from that one.
Here are my 4 predictions for 2014:
1. Real estate home prices will increase 3-5% nationally, and 7-10% here in California.
2. Mortgage rates will gradually increase and fluctuate between 4.5% and 5.5%.
3. Hybrid Arms will become a more popular option with fixed rates being higher.
4. Inventory will increase slightly.
So how did I do on my 2013 Predictions?
Pretty well, I think. I predicted that values would increase more than expected and that 2013 was a great year to buy….see my blog post written Feb 28, 2013, “Why 2013 is THE year to Buy”. I also predicted the interest rates going up, just not as dramatically as it actually happened. See my post written Jan. 17, 2013, “Why Fixed Rates are Going Up and Wont Come back Down this Time“.
Bottom Line: Every year brings change and the markets will always evolve, but considering where we have been, I think things are looking pretty good. With real estate, and especially our homes, we want consistency and stability and I think 2014 will bring that.
About the Author ~ Since 2003, Beau has been a mortgage professional and has successfully closed over $100 Million in mortgages. He is the Founder and Senior Mortgage Advisor at Transparent Mortgage and has worked for Luxury Mortgage, Bank of America and Impac Funding. Beau is truly committed to serving the needs of his clients and raising the industry standards for integrity and transparency.
Questions, Comments, or Personalized Rate Quote? Contact Beau today: 949.230.9358 or firstname.lastname@example.org