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Predictions for 2015 Housing Market

Here are five predictions for the housing market in 2015.

1. Millennials Will Become First-Time Home Buyers
Millennials will be looking to invest in their futures. Millennials between ages 25 and 34 make up 65% of first time home buyers, while 86% of them state that their motivation is a change in family circumstances, such as marriage and kids. Due to their student loan debt and limited credit history, Millennials will be searching for homes in more affordable markets such as the South and Midwest.

2. Home Building Will Be On The Rise
In 2014, housing starts will finish slightly above a million with a disproportional amount of the activity being the construction of multi-family units. Housing starts will increase by 16% in 2015, while single family units will have a growth of 21%.

3. Mortgage Rates Will Increase
In 2015, the steadily improving economy will lead to an increase in the federal funds rate. The 30-year fixed rate mortgage will hit 5% by the end of 2015, while the one-year adjustable rate will see little, if any, increase.

4. Credit Will Still Be a Huge Factor
Strict underwriting rules for the past four years has made it difficult for many consumers, especially younger ones, to get mortgages. The new federal policy initiatives in 2015 may help the situation. An improvement in credit access would result in an estimated 500,000 to 750,000 increase in potential home buyers.

5. The End of the Foreclosure Crisis
In 2015, the nations seven year battle with foreclosures will finally come to a halt. Already, in 2014, there was a substantial reduction in their numbers. Although foreclosures will see a reduction at a national level, they will still remain an issue at the local level.

Past Blog Posts

New Foreclosure Rules Could be on the Horizon
2015 Purchase Market Growth
Mortgage Rates Approach Year Low
Proposed Changes To Mortgage Rules
The Fading of Foreclosures
Buyers and Sellers not on Same Page
Money Mistakes To Avoid
Millennials, Baby Boomers Will Help Determine Housing Future
Purchase Origination Higher Than Refi’s
Building Home Equity
How to Save Money Cooling Your House This Summer
6 Tips To Help Save Money at Home
Memorial Day Facts
Landscaping That Adds Value To Your Home
Housing Recovery Due To Help From Economy