2019 Housing Market Predictions From Zillow Show Signs Of Concern
Zillow's recently published forecast for the 2019 housing market shows serious signs of concern. With a decent swing in 2018, the housing market may take a few steps backward, should these predictions actually come to fruition.
The report was authored by Aaron Terrazas, director of economic research at Zillow Research. Terrazas covers what he expects the fixed rate mortgage interest to reach and how it compares to years past.
"The 30-year, fixed rate mortgage interest rate will reach 5.8 percent in the new year, which is a level not seen since the midst of the 2008 financial crisis. Zillow writes that the increase in rates will 'compound the effect of still-rising home values,' resulting in generally less affordable home ownership," according to Reverse Mortgage Daily.
"Right now, rising mortgage payments are eclipsing gains to home value, which Zillow says can both 'encourage homeowners to stay put – to hold onto low mortgage rates that are disappearing in the rear-view mirror – and discourage would-be first-time home buyers.'"
Terrazas covers a wide range of domino effects that even include homes claimed by natural disasters, that have ravaged some areas throughout the year.
To learn more about the housing market outlook for 2019, click on the image above.