A lot is happening in the world, and it’s having a direct impact on the housing market.

Three areas of the housing market should be kept in mind: interest rates, building materials, and the outlook for an economic slowdown.

1. Interest Rates

Interest rates are currently at a 21-month low and according to the latest information from  Freddie Mac the rates appear to be here to stay.

Daily Mortgage Rate Survey

• 30YR - 3.80%

• 15YR - 3.63%

• FHA30YR - 3.60%

• Jumbo30YR - 3.87%

• 5/1ARM - 3.69%

2. Building Materials

Talk of tariffs could also affect the housing market. According to a recent article, the National Association of Home Builders reports that as much as $10 billion in goods imported from China are used in homebuilding. Depending on the outcome of the tariff and trade discussions between several countries, there could be as much as a 25% boost in the cost of building materials.

3. Economic Slowdown

We began the year with many economic leaders thinking we could expect a recession in late 2019 or early 2020. As spring approached, the economists had started to push that projection past 2020. 

Bottom Line

We are in a strong housing market. Wages are increasing, home prices are appreciating, and mortgage rates are the lowest they have been in 21 months.  Whether you are thinking of buying or selling, it’s a great time to be in the market.