3 Things to Know in the Housing Market Today!

A lot is happening in the world, and it’s having a directimpact on the housing market. The reality is this: some of it ispositive and some of it may be negative. Some we just don’tknow yet.

The following three areas of the housing market are critical tounderstand: interest rates, building materials, and the outlook foran economic slowdown.

1. Interest Rates

One of the most important things to consider when buying a homeis the interest rate you will be charged to borrow the money. Inour recent post we posed thequestion, “Are Low Interest Rates Here ToStay?” The latest information from Freddie Mac makes it appearthey are. We are currently at a 21-month low in interestrates.

2. BuildingMaterials

Talk of tariffs could also affect the housing market. Accordingto a recent article, the NationalAssociation of Home Builders reports that as much as $10billion in goods imported from China are used in homebuilding.Depending on the outcome of the tariff and trade discussionsbetween several countries, there could be as much as a 25% boost inthe cost of building materials.

3. EconomicSlowdown

In a prior blog post on this topic, we began theyear with many economic leaders thinking we could expect arecession in late 2019 or early 2020. As spring approached,we reported that economists had started topush that projection past 2020.  Now, three leading surveysindicate that it may begin in the next eighteen months.

Bottom Line

We are in a strong housing market. Wages are increasing, homeprices are appreciating, and mortgage rates are the lowest theyhave been in 21 months.  Whether you are thinking of buying orselling, it’s a great time to be in the market.