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Mortgage and Real Estate News Weekend Edition January 13th through 18th 2025
Mortgage and Real Estate News Weekend Edition January 13th through 18th 2025: Comprehensive Overview and Summary of Mortgage, Housing, Real Estate, Business, Interest Rates, Employment, Economic, and Investment National Daily News for the Week of January 6th through 12th 2025: This Week’s Weekend Edition Summary:
NATIONAL PRESS: SPECIAL REPORT ON REAL ESTATE, INVESTMENT AND EMPLOYMENT –January 13th through January 18th 2025 SUMMARY
Mortgage and Real Estate News Weekend Edition: January 13th – 18th, 2025
The broad coverage of the Mortgage, Housing, Real Estate, Business Activities, Interest, Employment And Economic Investment News
Real Estate Market Investment and Employment
The second week of January 2025 has been quite intriguing from real estate and mortgage industry perspectives as interest rates, employment, and the economy have shifted within the period.
Weaknesses In Mortgage Markets Interest Rates
Current Rates:
- Rates on Fixed-rate Mortgages over 30 years.
- Averaging 6.35% is slightly less than the average for the past week.
- Rates on Fixed-rate Mortgages over 15 years.
- These are unchanged at 5.75%.
- Rates on Adjustable Rate Mortgages.
- These are hovering around 5.10%
Forecast:
- Mortgage expert opinion reveals that rates will remain more or less unchanged in Q1.
- Dip slightly in mid-2025 with a de-escalation in inflationary pressures.
Applications And Approvals
Mortgage Applications:
- Fell by 3.8 percent, week-over-week, due to increased rates and seasonal buyer activity slumps.
Mortgage Approval Rates:
- Lenders indicate skepticism during the underwriting process, specifically for borrowers with higher-than-normal debt-to-income ratios.
Programs Of Interest
- Growth in the adoption of non-QM loans and beginner home buyer programs across states that offer down payment aid.
FHA and VA loans remain the most popular due to their low credit scores and high DTI ratios.
Market For Housing Updates Home Prices
National Average:
- Home prices increased by 2.5% compared to the previous year.
- The gains were mainly concentrated in the Sun Belt states.
- Migratory trends and a low housing supply increased the numbers for Austin, TX, and Phoenix, AZ.
Inventory
Few new listings exist, so inventory remains low. Currently, there is a 10 percent drop compared to the previous year.
Anticipating a rise in the demand for affordable housing, builders are beginning to invest in more suburban areas.
Rental Market
- 1.8% is the yearly increase in national rent. There was particularly notable progress in metropolitan regions.
- As the demand for rentals sharpens, multifamily developments still draw investors.
Real Estate Investment Trends
Top Opportunities:
- With a migration trend from economically expensive cities, there is an increased demand for suburban single-family homes.
- Investors take advantage of the strengthened rental market in multifamily properties in growing urban and suburban localities.
Green Building Projects
- The quest for an environment-friendly development appeals to buyers and renters alike.
Challenges:
- Developers’ Profit margins are squeezed by rising construction expenses and interest rates.
- As natural catastrophe risks such as wildfires or hurricanes emerge, investors pay careful attention to coastal markets.
Business and Economic News Employment
Unemployment Rate:
- The labor market is relatively strong, which is why the unemployment rate remains steady at 3.8%
Job Growth
Healthcare:
- Leading the pack with robust hiring.
Construction:
- Job growth is supported by increased residential and commercial building activity.
Consumer Price Index (CPI)
6.90% was the peak in 2022, but inflation has slowed down and is currently at 3.1%.
Lower energy and transportation costs have contributed to the decline, while housing costs are worrisome.
Economic Growth
Caught by the greater activity from consumers and manufacturing, the US economy grew at a rate of 2.4% during the fourth quarter of 2024.
Based on current conditions, growth is expected to proceed steadily throughout the first half of 2025 unless there are global interferences.
Looking Ahead Trends and Expectations
Real Estate:
- Expect a constant tightening of the housing supply, particularly in suburban areas, leading to moderate price hikes.
- Focus on initiatives on affordable housing to reduce the supply gaps.
Mortgage Market
Lenders may respond to increasing rates by launching new flexible products like interest-only loans and non-QM mortgages.
Comparatively, borrowers are encouraged to shop for the best rates and programs.
Investments:
- Having a stable asset class, real estate foresees superior suburban rentals and multifamily units as the next level of investment opportunity.
- Expect a higher level of interest towards opportunity zones and tax-sheltered investments.
Employment:
Construction and health care will likely continue as strong performers, while tech layoffs could begin to level off in the second quarter.
Economic Data
Continuous inflation and consumer spending reporting will directly affect the country’s Federal Reserve and general market sentiment.
Main Points To Note For This Week’s Review
The real estate market remains strong despite soaring interest rates and insufficient inventories. The prospects for employment remain strong while inflation is contained, allowing us to expect a stable economy in 2025.
Next week, we will report potential investment opportunities, growth projections for the real estate sector, and much more!
Let us also know what you think about GCA Forums News: Mortgage and Real Estate Section, and contribute your questions, comments, and ideas to the general public and experts in the field!
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