Memphis Housing Trends we are Seeing This Summer
As the summer hurries along and we slide to the end of Q3 for this year, there are some definite housing trends that we have seen develop in Memphis and beyond. Whether you are moving to Memphis or some other US locale, here are some summer trends for real estate that you should be aware of.
Mortgage Rates are Still Low
Despite growing sales and strengthening economies, the lending rates for 30 year fixed mortgages are still surprisingly low. This means that the time is ripe to apply for a mortgage. Experts predict that the numbers will grow, and the lending rate will be almost 5 percent by the end of this year.
Loans are Slightly Easier to Obtain
Getting a mortgage these days is obviously not as easy as it was during the housing boom, when pretty much anyone could get a loan. After the market crashed, obtaining a loan was even more difficult. Now, the standards seem to be loosening up a bit. Some lenders also are allowing lower credit scores on FHA loans. Many lenders required borrowers to have a credit score of at least 640 for an FHA loan.
Non-QM Mortgages are a Thing Now
When new mortgage regulations were implemented this year, many lenders said they would not lend outside the guidelines provided by the Consumer Financial Protection Bureau's qualified mortgage rule, or QM. Borrowers usually don't know whether or not they are getting a loan that meets QM requirements unless they are told they can't get a loan because of new regulations and the lender explains the details. But it is helpful for certain borrowers, including some who are self-employed and those seeking larger loans, to have access to lenders that go outside the QM lending box.
FHA Loans with Discounts
Homebuyers with small down payments have long relied on FHA loans, or loans insured by the Federal Housing Administration. But the cost of mortgage insurance on FHA loans increased significantly in recent years and it's an obstacle to many borrowers.
Home Prices are Cooling Off
The spring homebuying season wasn't as good as people in the industry had expected. For now, home prices seem to be taking a break. That's good news for those planning to buy a home this summer. Part of the reason home prices have increased so rapidly in some places is a shortage of homes available for sale, experts say.