Word on the street, and by the street I mean housing economists, is that 2015 is going to see an improvement on the current housing market. Â While many are citing encouraging market trends which no doubt are good indicators, there have been some significant government actions of late that could have a meaningful effect on home buyers this year. Â Three actions in particular are worth noting. Â
Here are 3 reasons why the current housing market will improve this year:
- The FHA (Federal Housing Administration) recently announced that it will lower mortgage insurance premiums to .85% annually. Â Lowering the premiums should make it easier for first time homebuyers to qualify for a loan and also afford more home as it directly effects the amount of their monthly mortgage payment.
- The Federal Housing Finance Agency in December announced that Fannie Mae and Freddie Mac, the two largest lending entities, will offer loans with down payments as low as 3% to qualified homebuyers. Â This will open up the ability to purchase a home to a much larger buyer pool who didn’t have the ability to save 20% for a downpayment.
- We’ve seen fuel prices cut nearly in half of late. Â This decline in gas prices will leave many people with more disposable income. Â For those worried about commuting it could expand their home options not only from a standpoint of distance to work, but monthly payment as well.
Have any questions about the market? Â Interested in learning more about buying or selling a home in Knoxville? Â Contact me, Troy Stavros with Gables & Gates, REALTORS today. Â I look forward to sitting down and talking with you!