Posted 12/24/2017

by Aly J. Yale

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

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2018 primed for a banner housing year; builders confident while renting lags

housing market

Aly J. Yale

The Mortgage Reports Contributor

Confidence up, renting down

It looks like 2018 could be a banner year for housing. Not only has homebuilder confidence has hit its highest point in 18 years, but renting – and the building of rental units – is on a downturn. Both spell good news for the housing market.

Verify your new rate (Jun 17th, 2018)

Buoyed builders

According to the National Association of Home Builder’s Housing Market Index, December saw homebuilder confidence reach a 74 – its highest point since July 1999.

The jump is due to “an improved regulatory environment,” according to the NAHB.

How to choose a home builder and get the house you want

The HMI also showed home buyer traffic up eight points, indicating a rise in purchase interest overall.

“With low employment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family sector next year,” the NAHB reported.

Verify your new rate (Jun 17th, 2018)

Renting takes a hit

If the America’s Rental Housing report from Harvard’s Joint Center for Housing Studies is any indication, there’s more good news on the horizon for housing, too. The report shows starts on multifamily units down 9 percent since October, while prices on existing units continue to rise.

Rental assistance is also on the decline. According to the report, just 25 percent of very-low-income households receive rental assistance – down from 28 percent in 2001.

Renting is now even less affordable

According to Christopher Herbert, managing director for the Joint Center for Housing Studies, growth in renters is dipping, too.

“This year’s report paints a complicated picture of the rental market,” Herbert said. “We’re finally seeing the record growth in renters slow down, but while the market has responded to rental housing needs for higher-income households, there are alarming trends that suggest a growing inability to supply housing that is affordable for middle- and working-class renters, let alone those with very low incomes.”

Get today’s mortgage rates

Next year is poised to be a good one in American housing. Want to take advantage? Shop around and see what mortgage rates you qualify for today.

Verify your new rate (Jun 17th, 2018)

Aly J. Yale

The Mortgage Reports Contributor

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

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2018 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)