I think interest rates will go up some, but not any more than 1.00 % to .50%. I think the Global economy will continue to hold back the U.S. economy. It’s also an election year and for whatever reason rates tend to not raise much in an election year. Now if inflation raises it’s ugly head then all bets are off.
We’re now under TRID regulations, part of the Dodd-Frank regulations. We have been since October of 2015. So far I think there have been some unintended results. Almost all of my investors have raised their fees this year. Those in turn are passed on to the consumer. Here in Colorado our purchase contracts don’t have any provision for the purchaser to get their earnest money back in the event the Contract doesn’t close on time due to TRID. I personally don’t have an issue with the forms themselves. However the timing of getting the Closing Disclosure to the borrower 3 days before closing is slowing everything down. I really think it is dumb from a refinancing standpoint since the consumer gets 3 days after closing to change their mind anyway. So funding is taking about 8 days after the cleared to close on a refinance.
As far as the real estate sales, I think it is totally dependent on what area of the country you live in. I still think Job’s and Income are still an issue and causing an affordability issue in much of the country. I think some people are suffering with low credit scores because of the Great Recession and haven’t been able to bounce back from that. The areas of the country that have good jobs and income will see steady growth in their areas. I do think things have gotten better. There aren’t as many underwater homes, and there are less foreclosures across the country.
So all in all a so so year.