Direct Lender Managing Partner Bryan Ziegenfuse on Mortgage Trends in 2019
Mortgage rates fluctuate almost daily, which can make it difficult to see the bigger picture, according to Bryan Ziegenfuse, a managing partner in a direct lender that focuses on real estate lending. So far in 2019, mortgage rates have fallen across the country and home prices have been rising slowly. What can we expect to see in the remainder of the year?
Bryan Ziegenfuse shared his thoughts on current home marketplace trends and what people can anticipate for the remainder of 2019. If you are thinking of purchasing a house in the near future, read on!
Mortgage rates will stay low
According to NerdWallet’s daily mortgage rates survey, the average APR for a 30-year-fixed mortgage fell to 4.09% by June 2019, down a full percentage point since November 2018. This drop was not expected, Bryan Ziegenfuse said, but it means people are looking at refinancing their homes at lower rates. It is predicted that this mortgage rate will remain relatively stable through the rest of 2019. Mortgage rates are always shifting, but experts predict that there will not be more than a one-tenth percent change for the remainder of the year.
Refinancing mortgages can be beneficial
This year is a good time to consider refinancing your home, Bryan Ziegenfuse said. Mortgage rates are not just down for those buying homes, but also for individuals interested in refinancing to get a lower interest rate. According to NerdWallet, estimates show that 5.9 million homeowners could cut 0.75% or more from their mortgage interest rate by refinancing. However, Bryan Ziegenfuse advised using a mortgage refinance calculator to find out the best time to refinance for your situation.
Home affordability remains an issue
Despite the low mortgage rates, first-time homebuyers are still expected to struggle to afford to purchase a home. NerdWallet reported that homes priced at $400,000 or less are in short supply, and the number of newly-built homes in that price range is declining. Those who are buying a house for the first time will find it difficult to afford to purchase a home, Bryan Ziegenfuse said.
Lending standards will become less stringent
Bryan Ziegenfuse said it will become easier to obtain a home mortgage, as lending standards will become less strict in the near future. People may not need the same credit score they would have needed a decade ago, less documentation will be required and smaller down payments will be accepted, making it easy to get a mortgage for potential buyers.