Home buyers are expected to outnumber home sellers this spring, which likely will drive up asking prices, Lawrence Yun, the chief economist for the National Association of REALTORS®, told The Wall Street Journal. “Given that prices are rising, more people will be pushed on the borderline of conventional mortgage limits and may need a large down payment or a jumbo mortgage,” Yun says.
Good news for home buyers this spring: Mortgage rates are expected to stay low, with the 30-year fixed-rate mortgage not likely to rise above 4 percent before May, says Keith Gumbinger, HSH.com.
We urge home buyers to get preapproved for a loan prior to home-shopping — a step above prequalification. Local lenders do this and assist with loan information. This could save home shoppers up to 10 days in the purchase process.
Source: “This Spring, Expect Higher Home Prices,” The Wall Street Journal (March 10, 2016) [Log-in required.]