May 14, 2021 | Market Update

Market News 5-14-2021

Mortgage Market Update

Experts Say the Housing Market isn’t About to Crash

Record sales, high demand, soaring home prices, low rates; the real estate market hasn’t been this hot since before the crash of 2008. The nostalgia has consumers and professionals wondering if another bust is on the horizon. According to experts, all signs point to no. A recent Bankrate report lists low inventory, builder’s inability to keep up with demand, an influx of new buyers, strict lending standards, low rates, and muted foreclosure activity as the six reasons why they believe no crash is on the horizon.1

Giving the Gift of Equity to Family

It’s not always an act of desperation if a seller agrees on a price lower than the appraised value. Frequently, it’s a family member generously offering to help with a down payment. To qualify for this gift of equity, the seller and buyer must agree to a set of rules set by the lender.2

Savings Could Juice Summer Market

Many Americans are sitting on accumulated savings from the pandemic, and those nest eggs could flow into housing purchases this spring and summer. Thanks to stimulus payments and reduced commuting expenses, personal savings rose to 21 percent annually in the first quarter of the year. This available cash could fuel home buying demand as the pandemic lifts, especially when inventory increases.4

Sources: 1nationalmortgageprofessional.com, 2themortgagereports.com, 4magazine.realtor