With the spring buying/selling season in full swing, let’s look at what’s hot in real estate and mortgage:
Mortgages with shorter terms. The 30-year, fixed-rate mortgage is still the king, but many borrowers are now opting for loans with shorter terms. According to Freddie Mac, in the fourth quarter of 2013, only 55% of borrowers refinanced into another 30-year, fixed-rate, while a record 30% refinanced into a 15-year, fixed-rate mortgage.
Vacation home sales. Following several years of flat or declining sales, vacation homes have become a hot item once again in many areas. The National Association of Realtors (NAR) 2014 Investment Vacation Home Buyers Survey shows that sales of vacation homes nationally increased in 2013 by 29.7% over the prior year.
Sales of new homes. New construction sales are expected to increase quite a bit this year. The NAR is predicting 1.13 million new home starts and 508,000 total new home sales in 2014, which is up from last year’s 917,000 new homes started and 429,000 new homes sold.
More open floorplans. In terms of home amenities, open layouts are becoming more popular. Many buyers are looking for homes with more open space and fewer hallways. The emphasis is on getting the most living space out of the square footage, rather than compartmentalized homes.
Greener, “smarter” homes. Energy-saving appliances and heating/cooling systems are now standard in most new homes. In terms of “smart” homes, not only are new homes being built with the latest technology, but there’s also a trend towards smart phones controlling various home systems.
Keep in mind that all real estate is local, so for information on the trends in your area, consult with your real estate agent and mortgage professional.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988. Licensed by the Commissioner of Banks - License No. MB2671