Most everybody I meet ask me “How’s the Real Estate market?” or “What are rates doing now?”
Well, I recently had a conversation with a good friend in the mortgage business, David Zopt with Guaranteed Rate. David recently had the pleasure of hearing from the National Association of Realtors chief economist Lawrence Yun, William Strauss from the Chicago Federal Reserve, and the event’s host, Edsel Charles.
From these three speakers I heard the following mostly positive information:
- Lawrence Yun sees interest rates increasing to 5.5% in the next year due to a variety of reasons, including the Federal Reserve raising of the Funds Rate. He expects home value inflation to slow from this past year’s 8% to 4%. He also thinks buyers have given up on the rate decreasing and are returning to the market.
- Edsel Charles expects only a 7% drop in productivity in the years 2020 thru 2023. The recent tax cut boosted the economy, causing his expectation to improve. He predicts an interest rate of 6.25% by 2020. He also believes there will be a new construction shortage of around 50%. This will be caused by builder’s hesitance to be caught with too much inventory. It’s worth noting that Edsel correctly predicted the housing bust of 2008.
- William Strauss believes the low unemployment rate will last another three or four years.
All three speakers gave a mostly positive outlook of the immediate future.
Personally, my economics degree tells me that all summers eventually come to an end. But in this case, I would be happy to be wrong. Of course, only time will tell.
If you have any questions or would like a Rate quote please reach out to David Zopt, VP of Mortgage Lending at Guaranteed Rate Mortgage 615.465.8382 or email email@example.com.
If you have any questions about your personal Real Estate needs, please contact me any time …
… “You’ve Got a Friend in Real Estate”
Jarod Tanksley 615.403.8265
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Brentview Realty 615.373.2814