Considering the scarcity of inventory within the housing market, compounded by low mortgage rates, the real estate industry continues to find the fuel necessary to maintain the upward market trajectory, which is expected to last through 2020.
According to the Mortgage Bankers Association [MBA], mortgage originations continue to increase, reaching $2.1 trillion in 2019 alone. The MBA reported that the average rate for a 30-year fixed mortgage is expected to be 3.6% in 2019, which is down significantly from the 4.8% reported in 2018.
Currently, refinances accounted for 38% of all originations, which is the highest level since 2016. The total amount of refinance originations in 2019 is projected to reach $793 billion, which is up significantly from the $467 billion reported in 2018.
Total loans for home purchases are expected to hit $1.27 trillion in 2019. This number is up from 2018 in which $1.21 trillion was borrowed for home purchases. In addition, the sales of existing homes are expected to hit 5.4 million, which is up from the 5.3 million reported in 2018. Home prices are also expected to appreciate on average 4.3% in 2019, which is significantly less than the 6.1% increase reported in 2018.
Home builders are expected to break ground on 870,000 homes in 2019. In 2018 873,000 homes were started, representing a marginal increase from the prior year.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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