The state of Ohio is widely known for having a balanced outlook where equal importance is given to both personal and professional lifestyles. Whether you need a commercial mortgage or home mortgage, it is always advisable to be equipped with information about the current trends in this market. With such information, you will be in a better position to make the right decisions when it comes to your mortgages.
Ohio mortgage trends in 2014
As we know, information is among the most powerful tools used by decision makers to make good decisions. When you are aware of what to expect in the real estate market, the mortgage trends and housing affordability, you will surely be capable of making the right decisions concerning home ownership and home purchase with confidence. In this article, I will bring you up to speed with the Ohio’s mortgage trends in 2014.
High interest rates
All experts are in a consensus when it comes to the interest rates. They advise that the interest rates will rise by the end of 2014 and the similar trend will continue in 2015 as well. Since the Federal Reserve is dropping its program for supporting the country’s economy, there is no doubt that the rates will rise. But, there is some good news. These rates will not increase as dramatically, at least for the time being. The home loans are expected to fluctuate between 4.4 to 5.5% in 2014. However, they are likely to hit the upper limit by the end of this year and early 2015.
Increased Adjustable rate mortgages
As 2014 began, the adjustable home loans have shown an increase in the market demand by almost 3 times from the last quarter of 2013. However, the most popular loans are the hybrid loans having fixed rates in the initial period. This is because these loans charge a lower interest rate compared to the completely fixed loans. Home owners will definitely want to tap to these loans. But, they should be careful about the future as they might end up paying more in interest eventually. Rely on your mortgage professional to guide you in these decisions.
Cheaper jumbo loans
From the first quarter of 2014, the non-conforming loans financing the higher value properties have become cheaper than their conventional counterparts. This trend is expected to continue this way until the end of 2014. The difference in their interest rates is about 0.4% but, this difference is significantly due to the large amounts of principle jumbo loans. Before taking any loan, you ought to do the math and check if it is cheaper to get a loan for buying huge luxurious home rather than a regular family home.
Even though there have been stricter eligibility criteria since January 2014, there are indicators suggesting that the mortgages will be more accessible as the year progresses. The reason behind this is that there has been a continuous trend showing a decline in the demand of the home loans due to the rising interest rates. Very few people will refinance in these situation therefore making the lenders to come up with attractive options for the buyers. They are already setting lower credit score acceptance for potential clients.
This may be the perfect time to take advantage of the current rates to purchase that next home or refinance your current home before the end of 2014. Call Jeff at the Mortgage Network of Ohio to explore your options 346-4070 ext 10.