Fannie Mae, who is a “leading source of financing for mortgage lenders”, has just released poor economic outlook that actually holds some very wonderful news for those trying to sell or buy a house!
In their recent report titled, “Economic Growth Outlook Subpar Again as 2016 Progresses. Consumers and Businesses More Cautious Amid Slowdown in Labor Market” Fannie Mae states that their, “full-year economic growth forecast” has been lowered to “1.7 percent, down from 1.9 percent growth in the prior forecast and 2.2 percent at the start of the year”.
In a nutshell, when the economy is bad, people don’t spend money on things like houses. But listen to what Fannie Mae’s chief economist Doug Duncan has to say about that.
“Home sales are expected to pick up heading into the spring season amid the backdrop of declining mortgage rates, rising pending home sales and purchase mortgage applications, and continued easing of lending standards on residential mortgage loans,” said Duncan. “Meanwhile, the homeownership rate showed signs of stabilizing during the first quarter of this year, as the relatively high homeownership rates among Baby Boomers have helped offset low homeownership rates among Millennials, many of whom remain on the sidelines due to ongoing affordability issues.” H/T Fannie Mae
The two key elements to lock into in Mr. Duncan’s statement are the following. “Declining mortgage rates” and “easing of lending standards on residential mortgage loans”.
This is great news for both the home seller and the home buyer. Mortgage loans are getting easier for buyers to obtain and the interest rates for those loans, (although near historic lows already) evidently are still in the decline! When more buyers are more capable of obtaining a mortgage this means more home sellers will be successful in selling their homes!
Don’t let a bad economic report get you down. It could just be the catalyst forward you needed to buy or sell your property!
Here is the entire News Release from Fannie Mae. But for all of your real estate needs along the Crystal Coast of North Carolina be sure to contact Margaret Hitchcock with Hitchcock Realty. Margaret is a real estate professional and Realtor with many years’ experience. Call her today at (252) 269-2893.