Young Buyers Start Taking Out More Single Mortgages As The Economy Accelerates In The U.S.
The economic crisis that has hit not just the United States but the entire world has certainly taken its toll on the younger workforce, as fewer and fewer young people were able to afford a mortgage or a new car. The crisis the US has experienced in 2007 was the biggest one since The Great Depression, and this has undoubtedly affected every market sector. However, further and faster economic growth is expected these days, meaning that most of those who are willing to get a job (and who have all the necessary qualifications for it) are likely to get it.
“Give me the young man who has brains enough to make a fool of himself.” — Robert Louis Stevenson
In addition to this, the mortgage and the real estate industry will both experience a significant boost in 2015, as an increasing number of first-time buyers are expected to take out a loan and buy their first apartment through HUD financing – and not only.
Credit Tightness Will No Longer Be An Issue
One of the reason why young people have refrained from making any big, long-term investment is the credit tightness and the strict rules they had to meet in order to qualify for a loan. Nonetheless, the constantly improving economy coupled with the reduced mortgage closing costs and the benefits of a conventional mortgage have determined more and more banks to relax their credit requirements, and this will certainly determine those who rent an apartment to consider buying it in the near future.
The convenient APR is yet another reason why young buyers have turned their faces towards the US real estate market yet again. What is an APR? APR stands for annual percentage rate and it applies to loans, mortgages and credit cards. Statistically speaking, the sales of homes are expected to grow up more than 5% in 2015, and the mortgage lending rates are expected to sky-rocket as well. Even though the number of mortgage applications has dropped by almost a tenth last year, it is expected to bounce right back this year, and this will positively influence the home sales as well.
On the other hand, the HELOC loans have also become very sought-after. What is a home equity line of credit? The answer is simple: this a convenient loan where the lender agrees to offer a maximum amount of money within an agreed period of time, where the collateral is considered the amount of equity the borrower has in his house.
Higher Incomes, More Opportunities To Invest In Real Estate
The real estate and the banking industries are not the only ones who will benefit greatly in 2015, as the employment industry is also expected to increase. Consumers expect an increase of up to 2% in their salaries this year, and this aspect is particularly important for young renters who have decided to take the matter into their own hands and to take the plunge towards owning an apartment, as opposed to just renting it.
As a matter of fact, one of the reasons why young people prefer to rent an apartment than to own one is the job instability, but as this aspect is expected to resolve in 2015 and people will show more confidence in the labor industry, real estate agents will quickly notice an increase demand for homes and apartments.