Mortgage Bankers Association Predicts a new surge in home buying

Portland metro homeAfter a slowdown in home buying for the last couple months, those still looking to purchase a home should brace themselves for increased competition in the housing market. With mortgage rates hovering around the 4% mark for most loan programs, and unemployment rates on the decline, the Mortgage Bankers Association has recently predicted that 2015 will see a 15% increase in new mortgages in 2015, most of those in the form of new home loans as opposed to refinances.As mentioned in my last newsletter, mortgage rates are tied to the 10 year treasury bond yield, currently at 2.3191%. As long as that yield remains below 3%, which is predicted for the rest of 2014 and early 2015, mortgage rates will remain very attractive to most buyers.“The unemployment rate is anticipated to fall to 5.4% by the end of 2015 and down to 5.2% by 2016. More people holding jobs translates into more home buyers.”
More of this story can be found at Market Watch

 

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