A Closing Door for Rates
For homeowners wondering if it's a good time to upgrade to a different home: While you have heard, no doubt, that housing supply is tight and prices are high, there are several reasons why it may be a good time to buy - and to sell - for some time. First, even though the real estate market is high interest rates are still historically low, a fading opportunity according to forecasts. Next, while prices remain elevated, current homeowners likely will participate in elevated prices for both their purchase and sale.1
Big Economic Growth Projected
Economists from Fannie Mae expect 6.8% GDP growth in 2021, including more than 9% in the second quarter as the pandemic eases. They also project home sales to be 6.2% higher than last year, and prices to rise 8%. The real estate market will most likely continue to rise, but they continue to watch wild-card factors such as inflation, supply-chain disruption, and how willing consumers are to tap their savings.2
Strong Recovery on the Horizon
Recent economic numbers indicate robust growth coming this year as the pandemic lifts. March saw more than 900,000 jobs added, including 280,000 in leisure and hospitality, 190,000 in education, and 110,000 in construction. Unemployment is at 6%, down from almost 15% at this time last year. The Conference Board's Consumer Confidence Index also skyrocketed to its highest level in more than a year.3
Sources: 1themortgagereports.com, 2fanniemae.com, 3fanniemae.com
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