On the Rebound!

The current housing market remains strong with no sign of a slow down in the near future.

While interest rates are still very low, they are starting to rebound and recently that bounce was fast! Rates jumped from 1% to 1.50% in just a few weeks. Experts predict we could see rates reach 2% by the end of the year, but are doubtful rates will reach much higher. While there has been a recent increase which may have affected consumers already in the home buying process, any rates below are still a very good deal. The Federal Reserve Chair Jerome Powell has stated the agency will not raise it's benchmark interest rate just yet. He also believes accelerated prices are temporary and not a sign of long term inflation. That's good news for consumers.

Get ready for a rebound on inventory in the housing market too. Last year was the best year in over a decade for sales of newly built single family homes and that trend is predicted to remain strong in 2021. The National Association of Home Builders reports optimism among home builders and predicts a related increase in inventory. Although lumber prices are high, strong demand for homes fueled by low mortgage rates has offset a rise in construction costs. Record levels of new construction have also helped to increase consumer optimism on housing availability. According to Fannie Mae's Home Purchase Sentiment Index, 52% of respondents believe now is a good time to purchase a home.

If you are a first time home buyer or a home owner considering selling, ask me how to take advantage of these low interest rates in a strong housing market.