Monetary policy has a direct effect on the real estate market in this country. At the end of 2018, The Federal Reserve’s chairman Jerome Powell raised interest rates slightly and through markets into a tailwind. The Federal Reserve’s sentiment has changed, and it is likely that this entity will not be raising rates this year. With home ownership becoming more affordable for entry-level buyers, companies such as Sun West Mortgage can expect to see an uptick in consumer activity.
Lowering Mortgage Rates
Becoming a home-owner can be a life-altering event for young adults and is quite a financial undertaking. This decision becomes even more difficult for those who took out financial aid to fund collegiate pursuits. As mortgage rates continue to lower during the short-term, the number of potential homeowners will increase. For individuals looking to capitalize on these metrics, homeowners are turning to organizations like Sun West Mortgage to receive adequate mortgage rates.
Increasing Supply of Luxury Homes
With the demand for cheaper homes rising steadily, those with expensive homes are struggling to find suitable buyers. Those that can afford luxury homes could potentially opt to purchase more affordable homes and build a portfolio of rental properties.
Economists often use real estate as a market health indicator. As long as interest rates remain low, it will be interesting to see how this market handles the turbulence in other areas.