Mortgage rates have been holding steady since May—hanging close to the 4.15% mark. Even after a slew of light economic reports were released last week and on the heels of the Federal Reserve’s meeting the prior week, interest rates remained unfazed.
And with this stable trend in mortgage rates, many people are wondering when and what kind of changes are on the horizon for the remainder of this year into 2015. Experts believe home sales will show a double-digit percentage increase in 2015 due to several factors.
The first of which is an improving economy. According to Reuters, “California’s newest budget package of $152.3 billion in state spending emphasizes large increases for education, pays down debts, and proposes a 32-year plan to fully fund the teachers’ pension system.” This budget plan marks a significant three-decade positive relief for homeowners whose annual tax bill averages $3,000.
Secondly, job growth is expected to improve. In fact, California’s unemployment rate is forecast to drop below 6% by mid-2017. With increasing wages and lower unemployment finally catching up to home value appreciation, more residents will be in the position to become homebuyers.