The Nation’s Housing Market To Boost 2020 Economy

Good news for the new year in the nation’s economy sector. According to CNN Business, the housing market is thriving and will continue to thrive into the new year boosting the economy in 2020.

Although the housing market is just a small factor in the boost, it still is important for the economy as a whole. Purchasing a home is one of the most important and largest purchase decisions one can

make. Consumer spending makes up approximately two-thirds of US economic growth.

“The housing market is probably going to be a modest tailwind to the economy,” David Berson, chief economist at Nationwide, told CNN Business.

Catalyst for the boost in the housing market stems from low mortgage rates, a strong labor market with rages that are rising and low unemployment rates.

Mortgage rates  are at a three-year low and home loans are very affordable. The Federal Reserve says it will keep rates on hold for the time being which stands at about 3.96% to 4.01%.

The central bank cut interest rates three times in 2019. The cut makes the adjustable-rate mortgages cheaper according to Lawrence Yun, chief economist at the National Association of Realtors.

The US Labor Department reports the 21st straight month that the unemployment rates have been at or below 4%.

They also reported that wages are up 3.1% over the last year. On average, annual wages have increased 3% or greater every month since the summer of 2018. Unemployment is down near a 50-year low.

The National Association of Home Builders and Wells Fargo reported a 20-year high this December in the Housing Market index. In fact, the Housing Market Index did not even reach this high pre -2008 mortgage crisis.

Click Here For the Source of the Information.

Know Your Credit Score and Other Helpful Home Buying Tips

There are many tools that new home buyers can use to prepare to become a homeowner, which were not available even a few years ago.  On the Internet, new home buyers can access home loan calculators, tax appraisals, pre-qualification opportunities, and constant credit monitoring.  Some new home buyers may not realize that the last item – credit monitoring – is one of the most important factors that lenders use to determine eligibility for a new home loan.  Staying on top of your credit right before you are about to buy a home is the most important thing you will need to do unless you are planning on being able to purchase a new home for sale with cash.

If you have the availability, sign up for a free credit monitoring agency which will not only be able to constantly inform you about your credit report, but it will also alert you if there are any changes to

your credit report.  You are going to want to know exactly where you stand with your credit when you go to apply for a loan.

If you check your credit report, and you see items on it that you don’t recognize, be sure to immediately report those errors to the credit agencies so that they can be removed.  Any good credit monitoring company will have information where you can dispute items on any of the three credit agencies’ reports.  You will need to have as clean a credit report as you can when applying for a home loan.

Finally, if there are legitimate items on your credit report which need to be addressed or paid, you will want to be sure to take care of those before applying for a loan.  Some banks won’t approve you for a loan with derogatory marks on your credit report.  Others will give you a loan, but it will be for a higher interest rate than you would have gotten with a better credit rating.

Credit is the biggest factor in getting a home loan, but don’t forget that you will need to have enough income to qualify for a home loan. Make sure you know how much you qualify for before going out to search for a house, so that you don’t go out of your price range during your search.

Click Here for the Source of the Information.