Home Sales, Rates and Jobs in 2011
Now that the new year is under way, both potential borrowers and people in the industry can’t help but wonder what 2011 will bring for the mortgage business, home sales and rates. After the historic lows these past few years, I think 2011 will see a slight uptick in rates (I’m betting we’ll be at a 5.5% by year’s end) but not enough to really affect home sales – 5.5% still being an incredibly good rate for a 30 year fixed rate. As a result, I don’t think interest rates will really be what drive people to go out and buy homes this upcoming year.
Instead, after some abysmal unemployment rates, I think jobs will be what drive people to buy homes in 2011. Many economic forecasters predict the job market in Austin will continue to improve this year, some say we’ll add as many as 20,000 jobs this year and even more in 2012. With people getting back to work, or finding better jobs, they’ll have money to spend and invest in the real estate market which I think will affect what and when people buy.
Of course, this is educated guessing so, come back often to see what’s going on in the mortgage market and at United Lending as the year progresses.
February 17, 2011 by Katie Parks · Leave a Comment
Transaction Coordinator for The McMillan Team of United Lending
Executive Assistant to David McMillan
