REALTOR Magazine (especially the July-August, 2021 issue) can be a great source of information to agents. Much of this information is also great for the non-licensed consumer to learn, too! Melissa Tracey wrote an excellent article in the most recent issue on the five mortgage trends to be aware of in the upcoming market. We would love to share this information with you.
To begin with, the interest rates for mortgages are likely to increase. Tracey quotes Lawrence Yun, the Chief Economist for the National Association of REALTORS, in his prediction of a 3.5% rate that is “likely by next spring.”
Second, the pandemic has caused lenders to raise the qualification standards for mortgage applicants. There are better rates for primary home buyers compared to second home/vacation homes.
Third, the home prices are increasing, and so are the size of mortgages. Tracey states that “in March, the average mortgage taken out on a new-home purchase reached a record-setting $374,000, up from about $332,000 two years earlier.”
Fourth, money borrowers are looking at nonbank lending. “Alternative lenders are offering traditional financial products and expanded digital options in loan processing,” says Tracey.
Finally, the lower rates may keep homeowners from selling any time soon, but could be a prediction that we may not see come to fruition. Lawrence Yun “offers a broader view, noting that mortgage rates aren’t the only factor potential sellers consider.”
To learn more about Sellect Realty, and the services we offer, please visit our website. Our e-mail address is contact@sellectrealty and phone number is (770) 509-0265. We are a family-owned, local, and independent real estate brokerage in Marietta, Georgia.