Real Estate News

Experts see tumultuous mortgages in the future

Published: 05 Jan 2017

It can be tough to form a solid estimate for mortgage rates when different factors keep changing. So far, multiple predictions have arisen, appearing to conflict with each other. At least two sources seem to believe that there will be some opportunity for buyers in 2017, presenting a bit of hope in the face of an uncertain market.

Forbes recently quoted Redfin economist Nela Richardson, who said that prices are going to remain where they are despite the chance for rates to "bump around" next year. Mortgage rate changes seemed to reflect recent political upheavals, with rates spiking in November, perhaps in response to the election.

"Mortgage rates going up is a bit of euphoria and optimism over [Trump's] promise to lower taxes, increase infrastructure spending and drive 4 percent econ growth," Richardson said. "As more details materialize and we get a realistic assessment, we will see rates bump around."

While the new presidency is clearly a cause of some concern for realtors and buyers alike, the opportunity for more housing could draw from other circumstances as well. In a list of different trends, Fortune recently said that the average rate of new groundbreaking each year increased 5 percent in 2016 from the previous year.

The source said that other conditions could encourage this rate to grow even further in the coming year. On a larger scale, some of the less dense cities in the country may seek more construction and permits, the same article said. 

Coupling title insurance with affordable mortgages will give potential buyers assurance for their property as well as security, no matter what trends end up occurring. In fact, the uncertainty of the future could be one more reason that protecting and defining title from the outset is important.