Shelter Six:  Home Inventory and Wage Growth Forecasted to Rise

November 26, 2018 by · Leave a Comment 

1. Good news for real estate sales as the Mortgage Bankers Association (MBA) forecasts inventory to expand with gradual increases in the housing supply over the next 2-3 years.

2. The MBA also projects wage growth to accelerate over the next few years, which will help more people be able to qualify at today’s higher rates and house prices.

3. Interesting enough, MBA forecasts mortgage rates to stay mostly flat around 5.1% throughout 2019.  MBA also projects Existing Home sales to increase 4.2% next year.

4. VA remains the best 100% home loan option on the market today and is the ideal mortgage solution for any eligible Veteran.

5. VA is hot and the number of VA purchase loans has now increased year-over-year for seven straight years with VA now making up about 10% of the total mortgage market.

6. The VA loan limit is the same as Conforming ($453,100) but VA allows the Veteran to borrow more by putting 25% down on the difference between the home price and the $453,100.

Rate Update

Last week was a very slow week with the Thanksgiving holiday and mortgage rates remained mostly unchanged.

This Week

Consumer Confidence figures are due out today, New Home Sales on Wednesday, and Personal Incomes and Jobless Claims on Thursday.