2015 Mortgage Lending Forecast

There is a lot of very good news in both mortgage lending and the Crystal Coast housing market. The ability to get a mortgage has become easier. Loan qualifications have been eased. The down payment requirement has been lowered.  The mortgage rates will remain low in 2015.

More good news! 2014 was the best year for home sales in Carteret County in 9 years. This was not a fluke or accident but a result of a steady rebuilding since the real estate bubble busted in the mid 00’s.

Mortgage

Relaxed Credit Requirements

2015 will be the year for relaxed credit requirements when it comes to getting a 30 year mortgage.

“After years of hyper-cautious lending, more mortgage lenders are starting to relax credit and underwriting requirements, which are also known as “overlays.” A big push in that direction came earlier this month when new guidelines from Fannie Mae and Freddie Mac took effect. These government-sponsored mortgage giants purchase about two-thirds of all new home loans.”

Source: Bankrate.com

A second chance for borrowers

Those who didn’t qualify for a mortgage this year (In 2014), or missed the boat on refinancing when rates hit bottom, should give it another try in 2015, says Chad Royle, regional sales manager for Bank of the West in Denver.

“I would encourage people to check with their local mortgage bankers,” he says. “Many consumers think they don’t qualify for a refinance or are not aware of rates, so they miss an opportunity.”

Source: Credit.com News

Lower Down Payments

Freddie Mac and Fannie Mae which buy a majority of the home loans in America will now fund loans with as little as 3 percent down. These 97 percent loan to value ratios are all part of the government’s attempt to maintain a growing housing market

Lower Rates Will Stay

Rates will still be low in 2015. Mortgage rates are expected to slowly creep up during the year by an estimated 1 point. 2014 closed out with 30 year mortgage rates just a hair under 4 percent. 2015 is expected to end with rates around 5 percent. These are still incredible rates when you compare to recent history.

Low Fico Score Requirement

Most lenders agree. A homebuyer will need at least a 620 FICO (Fair Isaac Corporation) score to qualify for a home loan. Each lender is different and each buyer’s circumstance unique. It is recommended to visit your banker or mortgage lender first before starting the home buying process.

There are currently around 1,700 homes, condos and townhouses for sale along the Crystal Coast. Most of the homes are priced under $200,000. With all things considered in terms of financing and buying opportunities now is one of the best times to buy real estate. It’s been almost a decade since we’ve been able to say that.

Margaret Hitchcock

Margaret Hitchcock is a Realtor and owner of Hitchcock Realty. She has been highly successful in representing buyers and sellers with primary, secondary, vacation, investment and foreclosure properties. Contact Margaret today at (252) 269-2893 or email Margaret direct at Margaret@hitchcockrealty.net.

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