Continued increased in rental rates may force consumers into purchasing a residential home, according to HousingWire.
Rentals were of increasing importance during the housing crisis because of affordability, and this forced homeownership to lows not seen in more than a decade. However, the Mortgage Bankers Association projects that home sales may spike year-over-year during the second quarter. The MBA thinks that 4.39 million home sales will be sold during the second quarter, a jump from 4.17 million during the same point in 2011.
“This means we might see a spring season better than the numbers are predicting,” said Jay Brinkmann, chief economist for the MBA at the organization’s mortgage servicing conference in Orlando, according to the news source. “Everything is going to be based overall where the economy goes. This is going to be a slow year. There are a number of headwinds we’re facing in terms of economic growth.”
In addition, the continued low residential mortgage rates may help encourage further improvements in the housing market. A report from Freddie Mac showed that the 30-year fixed-rate mortgage is still near record low levels, and is below 4 percent.