Interest rates will rise and home prices are expected to appreciate in 2018.
The Federal Reserve raised rates in December, citing these positive economic trends:
- Inflation has been low, at around 2% and isn’t expected to see much change in 2018. This is good news for new construction home prices.
- The economy and the stock markets are doing well, with the passage of tax reform expected to spur more growth.
- The Fed reports that they expect the unemployment rate to drop even more from its already 15-year low.
With mortgage rates about to start a slow rise, braving the January and February cold could save you thousands, as off-peak buyers typically enjoy lower prices. In a two-year Nerdwallet analysis, “…home sale prices — the amount a buyer actually pays — in the nation’s largest metro areas typically peak during the summer, dip in the fall and are lowest in winter, potentially saving off-peak buyers thousands of dollars.”
The prospect of more and better-paying jobs, low inflation and historically low mortgage rates should make 2018 a great year to buy a home. With more mortgage products available with low or no down payments, if you want to buy a home, don’t consider a shortage of down payment funds a barrier.
Get down payment information and see if you can pre-qualify for a mortgage to get ready to take advantage of a great year for homebuyers.
Not a commitment to lend. Programs available only to qualified borrowers. Subject to credit approval, underwriting approval, and lender terms and conditions. Programs subject to change without notice. Restrictions may apply.
While Opes Advisors, a division of Flagstar Bank, Member FDIC, uses all reasonable efforts to ensure that this information is current, accurate and complete on the date of publication, no representations or warranties are made (express or implied) as to the reliability, accuracy or completeness of such information. Opes Advisors, a division of Flagstar Bank, Member FDIC, therefore, cannot be held liable for any loss arising or indirectly from the use of, or any action taken in reliance on, any information appearing in this email.
Opes Advisors, a Division of Flagstar Bank | Member FDIC | Equal Housing Lender