February 25, 2021 | Market Update

Market News 2-26-2021

Mortgage Market Update

Sellers Feeling More Optimistic

Consumer sentiment for home-selling is on the rise, according to the Fannie Mae Home Purchase Sentiment Index. The percentage of respondents who say it is a good time to sell a home increased from 50% to 57%, while the percentage who say it is a bad time to sell decreased from 42% to 33%. Sellers cite favorable mortgage rates, high home prices, and low housing inventory as their primary rationale. Lower-income individuals in particular report feeling more optimistic, indicating the economic recovery is reaching those most negatively impacted by the pandemic.1

Personal Finance: Homebuying Strategy

Buyers are positioning their finances to win a bid on their desired home by removing their need to make offers with a condition that they sell their old home. As they do, there are important questions to ask, such as can the buyer afford a second mortgage? Should partners apply together or should the one with the higher credit score apply alone? Conversations about finances, especially before they begin talks with their realtor, are the optimal time for partners to determine how much house – and how much debt – they can afford. Such conversations also make partners better prepared for the mortgage application process.2

Economic Recovery Grapples with the Pandemic

Employment growth in January remained muted as many sectors experienced notable declines. The pandemic continues to weigh down industries like leisure and hospitality, limiting the labor market’s potential recovery. Until a larger portion of the population receives a vaccine, expect employment growth in these areas to remain constrained. On a positive note, the manufacturing sector is expanding and an increase in January vehicle sales could be a positive indicator for more consumer spending in Q1.3

Painting and Seller Prep – Earth Tones or Bright Colors?

In 2021, homeowners are experimenting more with the color wheel to brighten up their living spaces. Earthy and warmer neutral tones are replacing grays as the most popular shades, according to 54% of 68 design trendsetters recently surveyed. Blue is the most popular color for bedrooms. Designers said that navy blue or off-white is preferred for home offices. In kitchens, expect natural and earth tones or shades of green.4

Sources: 1Fannie Mae, 2Realtor.com, 3Fannie Mae, 4REALTOR Magazine