The Most Important Things You Need to Know About the Housing Market in 2016

housing market

It’s been said that the American dream is to own a home, and I don’t disagree. Some do, of course, saying that the American dream is a steady job and income, no student loans and a good credit score these days. Whether it’s your dream or not, however, owning a home is still a big deal to many. If you’re looking to build a home, buy a home or even sell your home, there are a few things you need to know about the ever-changing housing market. It changes continuously, and 2016 is no different. Here’s what you need to know this year.

Fannie Mae Requirements have Changed

In the past, it was more difficult for low-income buyers to purchase a home. Now, Fannie Mae has loosened her purse strings a bit and is making sure that buyers have more options. Now there are programs available for those who are not first-time buyers, those who are using gifts of cash to help make a down payment and they are funding loans for borrowers that are only 3%. Now is the time to apply for one of Fannie Mae’s HomeReady mortgages.

Rent is Going Up Fast

If you haven’t made a solid decision just yet about whether or not it is the right time to purchase a home, consider the fact that rental income is going up significantly. The expected rise in this rate is around 8% for 2016, so you’re spending even more money on something that does not net you anything in return when you rent.

Rising Home Prices Have Slowed

In the past few years we have seen home prices rise steadily, but it seems that the rise in cost has begun to level out a bit. In 2015, the average home price went up more than 5%. However, it’s expected only to rise approximately 3% in 2016. Of course, this does not apply to every housing market, but hopefully it does apply to yours.

Now’s a Good Time for Mortgage Rates

For a while it seemed as if the fed might hike the rates associated with mortgages, but they have not done so. For the time being, you can still lock in a low rate if you have good credit. That might make now the time to buy if you want to ensure you can afford the home of your dreams.

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