With the rush of the holidays behind us, we can finally start to look ahead. 2019 shows a lot of promise for the housing market, and for those looking into investment properties and applying for a non-recourse loan, it’s the perfect time to start evaluating trends.

Our non-recourse lenders at First Western Federal Savings Bank have the latest in market research and financial trends for you to look over as you start planning ahead. See what lies ahead for 2019, and begin your loan application process today to get ahead of the trends.

Higher Mortgage Rates

Unfortunately for homebuyers (particularly first-time homebuyers), mortgage rates are continuing to rise throughout 2019. As Director of Economic Research for Zillow Aaron Terrazas reports to Forbes, “Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8%.”

Other financial gurus think it will cap at 5.5% by the end of 2019. Either way, this is perhaps one of the biggest trends to consider — it’s a trend that has lasting implications in many other financial realms. It’s also important to consider as you’re looking for a rental property and beginning to apply for a non-recourse loan — buying earlier in the year may be a better option for you than putting it off for several months.

More Properties Becoming Available

The Baby Boomer generation had a hold on properties for quite some time. This created an all-out bidding war in many places, solely because properties were sufficiently hard to come by. USA Today reported that in 2017, the number of houses for sale hit an “historic low” and 2018 didn’t see much recovery.

We finally start to see some relief in 2019, as more properties are predicted to hit the market. This is great news for homebuyers and property investors, as there will be more places to choose from and a chance that costs might stay truer to their listed value.

The Struggle for Millennials

While millennials will make up 45% of the buying market in 2019, they’re at an economic impasse. Due to insanely high student debt rates and cost of living speedbumps, millennials are approaching the ideal age to buy a home (by 2020, the peak of the generation will turn 30), but don’t have the financial means to do so.

That said, many will still continue to put themselves in the ring. Those who have existing homes and would traditionally upgrade to a better second home will likely stay put, renovate their current place, and enjoy not having to deal with a rising mortgage rate that wouldn’t be worth their while.

Diversity in the Types of Homes

Probably due to those rising mortgage rates, 2019 is going to see more and more buyers settle for homes that aren’t traditional single-family residences. Mobile homes and townhomes in particular show to be in higher demand than in previous years, and by quite a wide margin. More mobile homes are predicted to be bought this year than last year, and currently, construction of townhomes is happening at a faster rate than that of single-family detached homes.

Renting Is Still Relevant

As mentioned, many first-time homebuyers are going to shy away from their big housing investment this year, simply because they don’t have the means to make it happen. There’s still a ton of demand for rental properties, which makes this a good time for you to purchase your own.

With a non-recourse loan from First Western Federal Savings Bank, you can make this happen. Get started with our lenders — apply today.