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. 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. Three actions in particular are worth noting. 
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. 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. 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. This decline in gas prices will leave many people with more disposable income. 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? Interested in learning more about buying or selling a home in Knoxville? Contact me, Troy Stavros with Gables & Gates, REALTORS today. I look forward to sitting down and talking with you!