All of the stories of doom and gloom from the last decade or so of crisis seem to be clearing up. The housing landscape as it stands is more stable now than it has been in quite some time, and for good reason. Not only is unemployment down, but mortgage rates, while not at all-time lows, are still affordable. When you add in that the market is stabilizing after years of flux, you can see why people are so optimistic, and why this is a great time to jump on it and get that first or second mortgage.
Unemployment is down and the economy has grown
When you compare figures from today from where they were not too long ago, there is a marked difference in unemployment rates. While things might not be booming like we’d hoped, we should be happy about where we are at this time. People now have more income, and things have stabilized. This has shown a rise in home prices, but when you see that home prices are still lower than in times not too long ago, and mortgage rates are still favorable, then you can see why people have high hopes. More income plus affordable prices plus favorable rates equals to a bright outlook.
Millennials are coming of age
Many countries have been struggling with the demographic problem of an aging boomer population. A huge percentage of our nation is growing into retirement and their golden years. In the coming years though, the largest demographic is set to be young Millennials who will be right in the sweet spot. In their mid-20’s, educated, and on the hunt for jobs and starting families. While we can’t expect them all to settle down, large numbers are expected to be on the market. Especially since they are forsaking the values of their parents, and moving back into the urban areas rather than out into the suburbs. This means new housing will be needed to accommodate them.
Housing prices keep rising
One of the problems of the crisis was that homes became too expensive, and people were borrowing too much $ from lenders to afford them. Still, rising housing prices, while not good for an individual homebuyer, are a sure sign that the market is recovering. In bad times, people don’t have the money or confidence to buy, so prices drop. As things improve, people begin to compete more for homes, and have more income and confidence to jolt the market.
Now is as good a time as there has been in a long time to go for your first or second mortgage. Your first to get yourself on the market, or your second to try and fix up your home, or purchase a second one to put yourself in place to cash in when the market climbs to new heights. Better employment, a stable economy, a demographic shift, and a rise in housing prices are all sure fire signs that things are looking up. For any of your mortgage needs for this new era, contact First & Second Mortgages. We can help put you on the path to success.