As the housing market continues to grow, mortgage lenders say that the outlook for homeowners is positive. With interest rates remaining low and home values increasing, now is a great time to buy or refinance a home.
Low Interest Rates
The Federal Reserve has kept interest rates low in an effort to stimulate the economy. This has resulted in historically low mortgage rates, which makes it more affordable for homeowners to purchase or refinance a home. With lower interest rates, homeowners can save money on their monthly mortgage payments and pay off their loans faster.
Increasing Home Values
Home values have been steadily increasing, which is great news for homeowners. This means that if you own a home, you are building equity. Equity is the difference between what your home is worth and what you owe on your mortgage. As home values increase, so does your equity. This can be a great source of wealth for homeowners who may want to sell their home in the future or take out a home equity loan.
Stable Housing Market
The housing market has stabilized after the 2008 recession. This means that home prices are no longer rapidly declining and the number of foreclosures has decreased significantly. A stable housing market is great news for homeowners as it reduces the likelihood of them owing more on their mortgage than their home is worth.
More Lenient Lending Standards
After the recession, lending standards became much stricter. However, as the housing market has stabilized, lenders have become more lenient with their lending standards. This means that it may be easier for homeowners to qualify for a mortgage or refinance their existing mortgage.
Conclusion
Mortgage lenders say that the outlook for homeowners is positive. With low interest rates, increasing home values, a stable housing market, and more lenient lending standards, there has never been a better time to buy or refinance a home. If you are a homeowner, now may be a great time to consider your options and take advantage of the current market conditions.