2014 Real Estate And Economic Outlook

2014 Real Estate And Economic Outlook

Good day everyone! My name is Bernie Gumucio, and I am a Senior Mortgage Loan Officer at George Mason Mortgage in Bethesda, Maryland. I have been invited by the good folks at Clark Realty Brokerage (great people by the way) to be a guest blogger and give you my insight regarding the ever changing world of real estate rates. For this post we will be focusing our attention on Mortgage Lending.

If you have been, or will be in the near future, in the market to purchase a home – whether you are a first time homebuyer, you’ve outgrown your current home, you’re buying a second home, or maybe just looking to buy for investment purposes – you are in luck! Interest rates have remained very low in 2014.

I won’t sugar-coat it: those of you who have purchased real estate before know that rates have gone up a little, but do you remember the days when 9% was a good rate for a home loan? Home buyers today are in the 4% range or better. Do not hesitate, readers; this is the best time to make a move and either purchase a home if you haven’t yet, or refinance your current one.

It has been predicted that the following will happen in 2014: “And while rising interest rates can certainly wreak havoc with home buyers, the negative impacts will be muted because of an improving economy. The key is for the Fed to reduce its Bond purchases as the economy improves while still keeping short-term rates low. With low rates, auto loans, home loans, and everything else that relies on short-term interest rates will barely notice the tapering of Fed purchases.”

In my humble opinion, 2014 is going to be the year the economy will finally break out of the low growth funk it has been in for several years. Gross domestic product (GDP) growth should rise by about 1% and inflation should remain tame. As a result, long-term interest rates will rise by about half a point, while short-term rates are predicted to remain microscopic throughout the end of the year. In addition, unemployment is predicted to fall from 7 to about 6.5%.

It seems that downside risks to the economy, while having not disappeared, have diminished significantly since 2013. House prices should rise by approximately half as much as they did in 2012 and 2013, while the percentage of distressed sales will continue to decline. As for existing home sales, these are predicted to remain flat or rise slightly, while sales of new homes should rise by about 20 percent.

Folks, trust me when I tell you that now is the best time to make a move in the real estate market. Do not hesitate – capitalize! You’ll be glad you did.

If you have any more questions or would like further assistance, please don’t hesitate to contact me directly:

Bernie Gumucio
Senior Loan Officer
6550 Rock Spring Dr ste #655
Bethesda, MD 2-817
NMLS #447984
(O) 301-841-1320
(C) 240-605-8400
(E-fax) 703-803-2533

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Phone: 301-466-5656
Dated: April 3rd 2014
Views: 3,988
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