No one knows exactly what the future will hold. This is especially true in regards to the housing market. Experts might have a pretty good indication of what the housing market might look like in the future, but a sudden event or a series of events could through even the strongest predictions off course.
In order to predict what the future housing market will entail, it is important to understand the different factors that affect the housing market.
1. Subprime lending and the ALT-A market-Keep in mind that subprime lending is no longer. There isn’t an ALT-A market anymore either.
2. Fannie Mae – Even though we all saw the disaster that occurred with Fannie Mae and Freddie Mac last year, Fannie Mae loans really haven’t been affected by the market trends. So, it is probably safe to say that Fannie Mae loans won’t be affected heavily in the future either.
3. FHA loans – People have been literally flocking to get FHA loans. These Federal Housing Authority loans have become extremely popular and have been a good selling point to first-time home buyers. These loans just might have a huge impact on the future of the American housing market.
4. Jumbo loan rates. Jumbo VA loan rates have not been keeping up with the rest of the market. The rates on jumbo loans have been rising faster than regular loan rates.
Experts predict that there shouldn’t be too many shifts in the housing market in the future. Predictions state that the housing market should level off and remain constant. Therefore, it is safe to assume that VA loan rates should remain about the same. Mortgage terms and conditions should also remain constant. The best news is that the market is on the rebound. Consumers everywhere are beginning to have more faith in the market. From there, everything should be able to correct itself.