Texas Lending Says 2016 Market Gearing up for Higher Prices

Texas LendingThe mortgage experts at Texas Lending say to expect lower interest rates, higher rental fees, and higher home prices throughout 2016.

Q: How much are interest rates anticipated to drop this year?

Texas Lending: In light of the upcoming election this administration will do its best to work with Federal reserve to keep interests rates low to fan the flames of the economy and sway the vote in the direction of incumbent candidates and their parties. Also with world economies stalling the US dollar will continue to be the place for bond holders to invest until a marked event signals a reason for them to move to another currency.

Q: Do lower unemployment rates affect household formation?

Texas Lending: More jobs usually translates into a greater number of households. The rental market will likely see a significant increase in demand in 2016, especially from young families. And with rental vacancies few and far between, rates in many areas are actually rising faster than inflation.

Q: Will real estate prices remain steady?

Texas Lending: Rental homes aren’t the only hot commodity right now. Many are scrambling to purchase before rates rise, meaning home prices are already being driven up for the year. The good news is that 2016 price increases (forecasted at 4-5%) may actually be lower than the last 12 months; 2015 saw property values inflate by 6% in high markets.

Q: Is refinancing still an option with a projected upsurge in interest rates?

Texas Lending: Refinancing will be more attractive this year than last year. Holdouts from 2007 purchases may, however, finally see the light and realize a drastic drop in their mortgage from when rates were high. Overall, we expect to see a pretty massive increase in refinance originations, about 33%.

4100 Alpha Rd
Dallas, TX 75244
NMLS# 137773
NMLS# 138112

Texas Lending