Stock Selloff Offers Rate Relief- The Kurt Real Estate Group

Stock Selloff Offers Rate Relief

In early October, investors sold shares in the Stock market and re-allocated money to other investment engines.

The upside to this Stock selloff? Lower interest rates for the housing market—in fact, rates reached their lowest levels in over 17 months in October. Initial estimates by the Mortgage Bankers Association showed week-over-week single percentage gains in home loan applications for both refinances and home purchases.

Lower rates seem to be the only bright side to the housing market recently, which is experiencing a drop in demand due to higher home prices, higher mortgage insurance costs, and fewer fall listings. These factors offset the benefits from lower interest rates, and are dissuading first-time homebuyers, based on a September report from Credit Suisse.

The Homebuying Landscape Evolves
According to a report by Freddie Mac, housing demand in the coming years will be driven by the Hispanic population. This group grew by 59 percent between 2000 and 2013, and is expected to double to almost 128 million in the U.S. by the year 2060!

Investment is also coming from overseas, with foreign interest in the U.S. housing market up 35 percent from April 2013 to March 2014, and still growing. According to an October survey from the National Association of REALTORS®, 7 percent of total existing home sales are made up of foreigners, and of those sales, Asian Indian homebuyers account for the greatest demographic at 6 percent or $5.8 billion, up from $1.9 billion only one year ago.

Altogether, forecasts for housing remain mixed for 2015. While banking analysts lower expectations for home values and home construction, others see this as good news for home prices.

The Bottom Line
Rates remain at some of their lowest levels in over a year, and are highly attractive for a home purchase or home loan refinance. If you would like to inquire about housing and home loan eligibility, please get in touch! I hope you enjoy this month’s issue of YOU Magazine.

Kurt Galitski

Meet Kurt Galitski - The Kurt Real Estate Group, your new best friend. Distinctive Strategies that Deliver Record-Setting Results. When you combine Kurt’s passion and knowledge of the real estate market, you really gain an appreciation for what makes Kurt different. But what truly sets him apart from the crowd are his 5 distinctive strategies and his property management… For Kurt, getting into real estate was not an accident, it was a deliberate and calculated decision to deliver a better experience to home buyers, sellers, and landlords that they have ever received before. Today, you could ask any one of hundreds of clients, read his Yelp reviews, or look at his track record of being featured in Orange Coast Magazine in excess of eight consecu­tive years and you too will say mission accomplished. www.KurtRealEstate.com www.KurtPropertyManagement.com 877-957-6677

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