Posted On: July 26, 2019
The economic expansion we are seeing in the United States is about to be ten years old, making it the longest expansion in its history. However, this expansion has professionals thinking that it is coming to an end.
During the rise of our economy, we have seen more jobs get created, rising wages and an enormous amount of wealth getting accumulated by homeowners and stock market investors. With homeowners playing such a significant role in the economy, this brings prices of homes down, because of the great desire for homeownership.
Unfortunately, Lawerence Yun, the chief economist of the National Association of Realtors, says “There is a housing shortage, and hence a critical need to build more homes, especially at moderately priced points where the demand is strongest.”
The places where demand is strongest would be the states that hold larger cities or are areas suitable for retiring, such as Florida. Every year we witness a rise of Northerners moving to the Sunshine State. Now, this has created a need for more homes in our state. This will then lead to the lowering of prices of houses in a state that will be making an attempt to fill those homes.
However, there is a slight, possible scare that could be on knocking on our door. With economic professionals like Yun thinking there could be a recession, this is the time to buy. Even with mortgage rates going up again.
-The 30-year fixed-rate mortgage (FRM) averaged 3.81%
-The 15-year FRM averaged 3.23%
-The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48%
There is some hope, however:
“If the housing market turns measurably higher, the economy looks to do just fine for the remainder of the year and even better next year.”
Yun is not worried about the possibility of a recession. If the housing market continues to see a raise, we could be in good standing for the foreseeable future.
However, if you are to buy or sell a home, you should trust us with your closing process. SETCO is here for buyers and sellers through their closing journey. Together with Qualia, we offer the safest, most up to date closing process available. We also recognize that each person has different requirements, and we have designed our services to fit accordingly for you.