The housing industry is definitely one to watch out for this year. Don’t agree with us? Check out the below-listed points:
- Prices are expected to climb, but not as quickly as they generally do
- More homes could be available at the end of the year, providing home buyers much variety and a greater collection to select from
- Homebuyers will have more equity to borrow out of
However, in other ways, the coming times could continue to be hard, particularly for buyers. Listed below are top mortgage industry trends to watch out for in the coming times.
- Home Prices are Expected to Reduce
There’s some fantastic news for first-time house buyers: Price appreciation of homes is speculated to reduce by far in 2018 following a torrid year or two. To go by the stats released by the Federal Housing Finance Agency, prices rose by 6.3 percent in 2016. The same trend followed in 2017.
However, for this year, the speculated increase among six businesses and lenders is to get a 4.1 percent increase in existing home prices. So what makes the prices low? Construction is one of the major factors. Economists anticipate the building of single-family homes to grow sharply in 2018, according to building permit applications. Single-family homes are expected to be climbing approximately 8 percent in 2018, to approximately 912,500 brand new houses.
- More Homes for Sale
Home buyers are trying really hard to sell their homes. The shortages are exceptionally high for the sorts of homes that first-time buyers have a tendency to purchase. Some of the reasons for the tight supply:
- Many baby boomers will be more than pleased to age in their homes rather than downsizing
- Investors who purchased countless houses following the housing bubble burst are making too much money as landlords
- Since homebuilders make more profit from expensive houses than entry-level houses, they are constructing only those
However, there’s some hope this year. As per market guru predictions, the housing supply pinch will begin to facilitate later in the year.
- Better Options for People With Credit Trouble
A couple of specialty lenders are focusing on non-traditional mortgages. For instance, one of the leading mortgage solutions providers aims that the debtor who has had a lifetime event, so that they dropped their home or needed to file bankruptcy or things got very bad, but they have finally got their feet back to the floor and they are all set to get their next home. Many lenders offer you interest-only mortgages, as well as loans with restricted income documentation. These mortgages are called “non-QM” since they do not meet qualified mortgage rules.
- Automation of Loan Process to Continue
Mortgage lenders will continue to automate the loan-application process. This is certainly one of the better news in the industry. It has certainly lived up to the latest trends and keeping up with the times. While some cook up their own automation in-house, whilst some techies and software service providers assist to automate applications. In fact, the trend has grown so much that a number of lenders wish to use automation to direct borrowers to loan goods that best match them.
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