According to a 2019 real estate outlook on Housingwire.com, buyer activity could see a boost into next year as a result of recent mortgage rate news from the Federal Home Loan Mortgage Corporation (FHLMC), or Freddie Mac. Although the Fed announced with no uncertainty that interest rates will continue to rise throughout 2019, Freddie Mac recently reported that rates have edged downward this week. Lower interest rates could motivate some homebuyers to come out of waiting and complete a home purchase.
Great Opportunity for Buyers
David Brodsky, broker/owner of boutique Austin real estate brokerage, David Brodsky Properties, says this could be a great time to save money on a new home. “For buyers who have obtained a pre-qualification on a home loan and have been waiting to make a purchase, this a great opportunity to jump into the market,” he said. “A lot of volatility in the stock market has resulted in a fluctuation in bond yields that have pushed mortgage rates down. Knowing that the Fed has made it clear that interest rates will continue to increase throughout 2019, this could be one of the best times to save money on a new home purchase.”
Lower Mortgage Rates Could Spur Sales
Although housing price growth has slowed this year, an increase of buyers on the market who want to take advantage of lower interest rates could bolster price growth in 2019. Additionally, homebuilders have reported that consumer demand is still strong despite concerns over rising home prices. The two factors combined with constricted housing inventory might make for real estate statistics in 2019 to look very similar to this year.
Competitive Market Next Year
Todd Probasco, Lakeside Bank’s vice president and mortgage sales manager, said as much in his 2019 real estate outlook. “For 2019, I expect to see a lot of similarities from 2018 into 2019,” Probasco said. “The majority of transactions in 2019 will be purchase, although there will still be some refinance.”
As a result, it’s expected that the real estate market will prove to be as competitive – if not more competitive – than the market has proven itself to be in 2018. For that reason, buyers and sellers are strongly urged to consult the assistance of an experienced real estate agent to enable them to achieve their real estate goals in 2019.
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