Higher incomes could boost home sales.
More on 2015 real estate trends.
More households report their income is higher than it was a year ago and expect their financial situation to continue to improve, according to Fannie Mae’s January 2015 National Housing Survey.
“This is a rare sweet spot in which the market favors buyers and increased home sales,” according to Coast2Coast Mortgages Founder Walter Bianchi.
The Fannie Mae survey indicates increases in household income bolster confidence in the housing market.
The report also showed a decrease in households who say they’d rather rent than buy, the first such decrease since September 2014.
Additional findings from Fannie Mae’s January survey include:
- The majority of households believe home prices will rise over the next year, an average of 2.5 percent over the next 12 months.
- 45 percent of respondents say they believe mortgage rates will also rise over the next year, falling by 3 percentage points compared to one month earlier.
- 52 percent of respondents believe home rental prices will rise over the next year — a slight decrease month over month. The average 12-month rental price expectation fell to 3.6 percent.
“Anyone thinking about buying a home soon should begin watching rates carefully while they’re at all-time lows. I always recommend locking in a low rate before it disappears,” Bianchi said.
“The better prepared you are now to act, the better price you’ll get on your next home and your next mortgage loan,” Bianchi said.
If you have questions or would like more information, call us at 904.894.6037 or shoot us an email. We are here to help you with every step of the mortgage process to ensure you get the best loan at the best rates.
Source: “Consumers’ Positive Financial Attitudes a Good Sign for Housing,” Fannie Mae (Feb. 9, 2015)