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As a calendar year ends and another begins, it’s common for many financial institutions to take stock of the previous year’s trends and look forward to new ones. As a top mortgage company in Tennessee, we at Mortgage Investors Group are constantly on top of the market trends and vital pieces of information you need to know.
Housing has been on a relatively steady rise since the recession in 2008, trending higher each year. This was the case again in 2017 – what are some of the major areas that have done well, and can these continue into 2018?
Starts
In particular, starts appear to have taken a major jump. They rose 3.3 percent just in November, with single-family starts rising over 5 percent alone. The rates for single-family starts is now the highest it’s been since September 2007, or over a full decade. In addition, experts expect that starts will stay strong in 2018, and could finally hit that magical 1.5 million annualized rate figure that many had forecast years ago by 2019.
This trend, in turn, has lifted homebuilder optimism. The homebuilder sentiment index hit a high of 74 in December, and this sentiment points directly to rising starts and higher new home sales in 2018.
Existing Home Sales
Existing homes have done well also, particularly near the end of the year. Sales spiked 5.6 percent in November, the highest single monthly sales reported since December 2006. The year-over-year growth ratio here was reported at 3.8 percent, a fantastic figure.
The southern US is a particularly big factor here. The recovery following large hurricanes from 2017 has lifted overall housing activity, with existing home sales in the south spiking by 8.3 percent in November.
Sustaining Momentum In 2018
Investors in the field expect significant growth in corporate earnings in 2018, with stocks rallying. Growth expectations register in interest rates, with the US Treasury note moving to a higher 10-year yield than traditionally seen. Quotes on the prime 30-year fixed-rate conventional mortgage have risen up to 4.125 percent at the national level. While it’s possible this was the result of market enthusiasm that won’t last, this could continue all the way through 2018.
For more on 2018 mortgage trends, or to find out what our mortgage lender services can do for you, speak to the experts at Mortgage Investors Group today.
