Where is Housing Headed for Late 2015?

According to Kiplinger, the housing recovery will step up its pace heading into the second half of the year and beyond. Existing homes sales will climb 7%, while new home sales will be up by 9%. In 2016, existing home sales will rise 6%, while new homes will rise 23% from this year.
Two groups of buyers will have impact on future sales:
1. 1st time buyers of existing homes, who now comprise 32% of all purchasers, up in May from 29% a year ago. Their presence in the market will rise and be around 35% by the end of 2016. First-time buyers are older, delaying marriage and home purchase because of the job market, student loan debt and other factors.
2. Buyers with non-stellar credit. More of them are able to secure home mortgage loans as lenders loosen credit terms. The Federal Housing Administration (FHA) has had an increase in acceptance of borrowers with credit scores less than 640, and higher debt-to-income ratios.
Higher rents are causing more first-time buyers to buy a home. Gradually rising mortgage rates through the rest of the year encourage buyers to take the plunge.

Posted on August 25, 2015 at 8:16 am
Nancy Low | Category: News

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