With the rollout of a new set of government programs, the U.S. real estate market is poised for continued growth in the months ahead. For mortgage professionals, this presents a unique opportunity to capitalize on increasing demand for home loans.
As the new year begins, it is important for mortgage pros to be on the lookout for certain indicators that can help them capitalize on the trends driving the rapid expansion of the U.S. housing market. Here are some of the most important of these indicators to keep an eye on:
• Mortgage rates – Mortgage rates have been at historically low levels throughout 2020, indicating that they could remain low through 2021. Keeping a close eye on rate movements and responding quickly to any changes can help mortgage pros stay ahead of the competition.
• Home prices – Home prices have been rising steadily for years, and many markets have seen even sharper increases in the past 12 months. Watching prices, both nationally and in specific markets, can help mortgage pros better understand how their clients’ budgets fit into the current market.
• Government programs – The federal government introduced several new programs in 2020 to help homeowners, and there could be more to come in 2021. Knowing which programs are available and when they become active can help mortgage pros make sure their clients are getting the most out of every loan.
• Demand for mortgage products – The demand for mortgages has been rising steadily, and it looks like it could continue to increase in 2021. Mortgage pros should pay attention to local demand and make sure they are capitalizing on any opportunities that arise from it.
Given all of the positive developments in the U.S. housing market, 2021 promises to be a great year for mortgage professionals. By staying on top of the indicators outlined above, mortgage pros will be well-positioned to take advantage of the immense potential for loan origination and closing in the coming year.
Analysis:
The new year of 2021 brings new optimism and opportunity in the US real estate market, especially in the mortgage industry. Mortgage pros stand to benefit from this trend as mortgage rates remain low, home prices rise, government programs become available and the demand for mortgages increases. In order to capitalize, mortgage pros should keep their eyes on certain key indicators such as mortgage rates, home prices, government programs and demand. Keeping current on these can help mortgage pros understand the market and make the most of the increasing potential for loan origination and closing in 2021.
Mortgage rates have been at historically low levels throughout 2020, making them attractive to potential home buyers and likely to remain that way through 2021. Home prices have been on the rise for years but especially in the past 12 months, with higher prices being seen in many areas. Government programs were offered in 2020 to help homeowners, and these may continue in 2021; knowing what is available and when they are active can ensure mortgage pros help their clients get the most out of each loan. Lastly, mortgage demand is expected to increase in 2021, and mortgage pros should pay attention to local demand so that they can take advantage of any opportunities that arise.
Overall, 2021 is expected to be a great year for mortgage professionals. Those who are aware and responsive to these indicators will be in the best position to maximize their success.
This article was contributed on Sep 23, 2023
