Home price appreciation is expected to continue in 2016. The housing market has stabilized and, in many areas, it’s difficult to find a home to buy. Right now, interest rates are low and mortgage professionals are doing well with First Time Home Buyers and Refinance loans. There is also a growing increase in Reverse Mortgages. Many Financial Planners are looking at this group and tying that investment into existing retirement assets.
Hot Markets Now:
- Millennials – All bets are on millennials to be the next big wave of home buyers. Many are not focusing on Start Up homes and are looking to pre-approvals on larger loans so they can move fast to snap up a property they want.
- Hispanics – Increased numbers, greater affluence, buying larger-sized homes to house multiple generations.
- First Time Home buyers – Did you read the article in the NY Times about boomers who are buying their first homes? First Time Home Buyers are not just Millennials
- FHA Loan Holders with enough Equity to refinance to a conventional loan
Could become a Hot Market Soon:
- Reverse Mortgage Market – No COLA for Social Security recipients, many retirees need dollars to live on. New Reverse Mortgage products available in the market have more flexibility to meet home owner needs, including Home Equity Conversion Mortgages (HECMs), which are insured by the Federal Housing Administration.
2016 is predicted to be the biggest year in the mortgage industry since 2012. This is the time to market your mortgage business!