2017 Anticipated to Deliver Strong Housing Market

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Buying a home of your own is one of the largest accomplishments of your life, and if you’re looking to buy a house right now you’ve probably been saving money for years to make that dream come true. Luckily for you, experts predict that 2017 will be a great year for home buyers.

Positive Trends

For 31 months straight, the National Association of REALTORS® has announced that the Pending Home Sales Index posed above its benchmark value of 100. Since a home is considered pending once it is under contract between a buyer and a seller but not yet sold, a high number of pending homes indicates positive growth for the future. In fact, 80 percent of pending homes close within two months of the contract being established.

The Pending Home Sales Index was established in 2001, which most experts consider a solid year in the housing market. It was then that the benchmark of 100 was established, and the fact that the benchmark has been crossed 31 months in a row indicates very strong growth across America. The Northeast region is the strongest, up nearly six percent from last year.

The Best Loan Types For You

You have probably heard plenty of stories, nightmares, and myths about what it takes to qualify for a mortgage loan. While it certainly takes specific financial qualifications, today’s two major loan programs make it possible for three of four loan applications to be approved and closed, compared to only sixty percent in 2014.

FHA loans are used for about ¼ of all buyers, especially young buyers, because it only requires 3.5 percent down payment and can work with buyers whose credit scores are as low as 580. It’s possible that using an FHA loan can generate lower monthly payments as well. Conventional loans, on the other hand, are the most popular. It’s commonly assumed that 20 percent down payment is required, but it’s actually possible to put as little as three percent down under specific subprograms. However, certain perks are available with larger down payments.

If you’re ready to buy a house in this strong market, but you’re not sure where to begin, talk to a housing expert to launch your journey to homeownership.