2018 Buying Trends
- 1. Rates are rising, but no so much as to deter home buyers. 30 yr. mortgage on 2/5/18 is 4.5% for a single-family home (credit score of 740 and assumes the loan has an escrow account). This according to Wells Fargo. Rates are expected to rise to 5% by the close of 2018.
- 2. Banks are expected to actively pursue buyers this year especially those who wish to purchase homes as investments. Banks will be more open to lending for investment opportunities and will be offering more diverse loan products.
- 3. Housing inventory will continue to be low for the 1st half of 2018. This is largely because buyers who are ready to sell will not list their home until they have found a new home.
- 4. Due to recent tax reforms, vacation home sales are predicted to rise. The new tax plan will put more cash into the pockets of wealthy Americans enabling them to purchase vacation homes..