Housing News Recap: Get Ready to Make Your Move!
Check out our timeline of most recent housing and economy events to see how it’s led us to a great time to buy or refinance your home!
It’s been an eventful past few months as we have seen how a slow recovering economy can impact the housing market and interest rates. Prospective home buyers have experienced lack of inventory and higher home prices as a result. However despite the ups and downs in the economy the main thing that has helped home purchases and refinances is interest rates have remained low! Let’s take a look at these past few months and see how some key events have affected our housing market and what we think interest rates will do moving forward.
Early Spring Set Backs
In the beginning of spring, future home buyers may have entered the market with optimism as they began the search for their new home. However many were bombarded with a low inventory and higher home prices. We learned in the early spring that slow housing starts had resulted in lack of new homes which caused home values to go up. Home buying season had gotten off to a rough start leaving home many buyers frustrated.
Slight Increase in Inventory
In May we saw an increase in home sales. The pairing of low interest rates and rising home values caused home owners to cash in on their newfound equity by either refinancing or putting their home up for sale. The percentage of homes put on the market and sold increased for the third month in a row come May 2016.
The Fed vote in June
On June 15th, 2016, the Federal Reserve opted to leave interest rates unchanged. Their slow approach to raising rates was the outcome of slower growth in the economy than originally estimated.
On June 24th, 2016 Britain voted to separate from the European Union which left an unstable economy and investors flocking to US bonds for stability. With bonds rising, interest rates have remained low.
What Are Rates Looking like Moving Forward?
With the Fed voting not to raise rates anytime soon and Brexit taking place, interest rates should remain low for many months to come. Although no one can tell where the market is going, it’s important to understand that rates are still at historic lows right now! With home values up now is a great time to refinance your loan and with inventory not as tight as the early spring, it’s looking better and more affordable for home buyers to get into a home NOW before summer ends.
Main Reasons to Refinance
- Home Values Are Still up
- Interests are Low
Main Reasons to Purchase
- Inventory is starting to increase
- Interest rates are low! Making your home purchase more affordable