If 2014 brought you down, you aren’t alone. The employment rate was weak, first-time homebuyers were scarce, investments took a beating and to make matters worse, credit was hard to find.
It seems, however, the sun has finally begun to break through the clouds.
With experts predicting a 6.3% increase in first-time home buying and the employment rate steadily on the rise, Americans can finally stop holding their breath. These two crucial signs of economic improvement are what we were hoping to see in quite some time.
First-time home buyers, who might have qualified for a mortgage loan in 2012 but would have been stretched thin budget-wise, are now snatching up properties as interest rates are still at an all-time low and the economy accelerates. This could not have come at a better time for the mortgage industry as the purchase market was at an all-time low last year.
Want more good news: wages are increasing. In fact, the Thomson Reuters/University of Michigan consumer sentiment poll showed last month that consumers expect an increase of 1.7 percent in their incomes in 2015, the highest since 2008. Those under 45-years-old expect the biggest gain, at 4.7 percent.
The Federal Reserve calls the present economy one of “full employment,” which means if you want a job, you have one. A far cry from what the employment sector looked like only a couple of years ago. With 2.7 million more jobs added last year alone, the most since 1999, the unemployment rate will average at 5.2 to 5.3 percent, numbers not seen since before the financial crisis.
As first-time homebuyers purchase these properties, sellers can now move on to their next purchase. The economy needs these entry level purchases to fully function properly. With a sellers’ market clearly on the horizon, Fannie Mae predicts an increase in home sales from 5.4 percent to 5.7 percent.
Hypotec, a leading mortgage lender since 2004, offers first-time homebuyers the opportunity to purchase their home with as little as 3.5% down based on qualification. “Our strength lies not just in how we do the deal for the client but how we educate the client on the deal,” says Freddy Abitbol, president of Hypotec. The feel this company protrudes is one of direct contact with the upper echelons of the company. They put an enormous amount of focus on being directly accessible to the borrowers and to providing as much education as possible. “This is especially true with first-time homebuyers, you can’t rush the client. You need to explain in great detail every step of the process so they know exactly what to expect and can make educated decisions. Information is not the same as education. Information on mortgages is everywhere but knowing how to plan and what mortgage is better suited for your needs, in other words, education is paramount. I too was once a first-time homebuyer and can relate to the plethora of information being thrown your way. When you understand the process, what to expect and know who to deal if you run into a snag, the process becomes that much easier and much less stressful,” continues Abitbol. “That’s why my phone is strapped to me at all times,” he jokes. Most of the borrowers that find their way to Hypotec are the fall-out from the big banks. People who want to feel more personalised service, who don’t necessarily fit into the strict guidelines of the bigger banks or who have had bad experiences in the past, find Hypotec a breath of fresh air in an otherwise stale mortgage industry. Things are definitely looking up for 2015!