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2015 Purchase Market Growth

With the economy continuing to show signs of growth, the purchase market is also expected to become stronger in 2015. While there will be certain challenges, such as higher interest rates, other factors should help boost the purchase market overall.

Some of the main reasons behind next year’s expected purchase market improvement include:

Purchase Market Growth Challenges
The positive job outlook for 2015 and the possibility of income growth should be enough to overcome the rise in interest rates, which would normally lead to a decrease in housing activity. It’s also important to note that while interest rates are expected to go up, this should only be a slight rise. There are a couple of other challenges to consider as well. Home appreciation rates and mortgage rates are expected to rise, which could lead to lower affordability. If there is enough income growth to go along with these increases in 2015, this should help homes remain affordable for most home buyers.

Other Factors
Housing starts and home sales, especially for single-family properties, are expected to increase in 2015, which will also help support purchase market growth. The number of refinance mortgages has also been on the decline and will eventually be offset by a growing number of purchase mortgages.

Past Blog Posts

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