Though Forbes Magazine first published this piece on December 6, 2018, we here at Tim and Julie Harris Real Estate Coaching believe the industry experts quoted for this article are worth reading again.
Will Mortgage Rates Continue Rising in 2019?
Aaron Terrazas, the chief economist with Zillow, said yes. “Despite steady climbing for the past 2 years, rates remain lower than during most of the recession and below the average for the typed of strong economic growth we’ve been experiencing. This will change in 2019 when the 30-year, fixed rate mortgage reaches 5.8%, territory not seen since the dark days of 2008 when rates were racing downward in the Fed’s response to the housing crisis.”
Will Millennials Keep Buying Houses?
According to Odeta Kushi, the senior economist with First American, “The housing market in 2019 will be characterized by continued rising mortgage interest rates and surging Millennial demand…the largest cohort of Millennials will be turning 29 in 2019 and MIllennials are entering peak household formation and home-buying age. (This demographic) is contributing, and will continue to contribute, to the increase in first-time buyer demand.”
Danielle Hale, chief economist with Realtor.com, said, Millennials will continue to make up the largest segment of homebuyers…accounting for 45% of mortgages, compared to 17% of Boomers and 37% of Gen Xers. “ Hale also said, “…older Millennials will have more options in mid-to-upper tier price points and will make up the majority of Millennials who will close in 2019. We expect 2020 to be the peak Millennial home buying year as the largest cohort of Millennials will be turning 30. We also expect that Millennials will likely make up the largest share of home buyers for the next decade as their housing needs adjust over time.”