As 2016 fast approaches the mortgage industry seems uncertain of what is to come in near future. According to DS News, the residential real estate market will hinge on location and housing cost based on a recent news by Trulia.
The publication then points out to the last housing boom and bust cycle of 1989-2005 and that was more than the usual period of 7-10 years. Thus, there is looming fear that there will be another housing market boom and bust cycle starting in 2016. If there would be one, analysts try to figure out if it's going to be as long as or twice the last cycle.
"For many, owning a home is making a comeback as an essential part of their personal American Dream," DS News quotes Trulia. "At the same time there's a growing sense that achieving that dream will be difficult in the year ahead."
Trulia reportedly has also showed that buyers still think that the American dream of homeownership versus the share of consumers who want to own a home, is rising. Moreover, as recently reported, The Central Bank has been hinting for a year now that they will be raising interest rates, even though many are skeptic that this would happen, this will greatly impact the housing real estate sector.
This expected rise in interest by the Federal Reserve has an influence on the outlook of homebuyers in the future. Trulia has shown that 22 percent of Americans believe that getting a mortgage loan will not be easy in the next year. Moreover, 25 percent of Americans believe that getting a mortgage to buy a home will become harder in 2016 while 22 percent think that this case is true to applying mortage to refinance.
On the other hand, not all American's fear that 2016 would be bad. Some believe that it could become a sellers' market thus selling a home in 2016 could be better than 2015.
