Palm State Mortgage Company could hardly miss reporting on a recent declaration by Freddie Mac that 2016 might be the best year for housing in a decade!  It’s wonderful to see Freddie Mac is not full of gloom and doom about our recovering economy.

A New 2016 Optimism: Freddie Mac’s Peek into a Financial Crystal Ball For House HuntersHappy woman loves Palm State Mortgage and her savings

In fact, these days, it seems Freddie Mac has looked into a crystal ball and seen a brilliant future for the remainder of 2016.

The year, although it will soon be half over, still blazes brightly with prosperity and promise for homeowners and mortgage seekers.  By the way, you can check out some of the latest news on interest rates in a recent article in Bankrate.

Freddie Mac has good reasons for the predictions, which came at the end of March in their monthly Outlook.

Mortgage News Daily reported that Freddie Mac saw “sales, construction, and prices, set to reach new recent highs.”  Likewise, Freddie Mac formed their high opinion of the year on mortgage rates and more.

Experts at Freddie Mac took into account recent figures on “employment, household formation, rising home inventories and increasing prices.”

With these five keys we can unlock the prosperous future of 2016, and Palm State’s 5 Keys to Financial Optimism. 

Optimism Key 1:  Mortgage Rates

Naturally, both Freddie Mac and Palm State hasten to dampen enthusiasm a bit because a rapid increase in mortgage rates would change the face of facts.

However, we remain confident that rates are only going to ease gently upward.  This is good news if you are searching for a home ownership opportunity!

We at Palm State Mortgage Company realize that there is a delicate balance between the affordability of houses and a flat-line income.Dream About an Affordable Home.

Without going too deeply into foreign affairs, some geographic and fiscal factors are keeping our interest rates down:

In both Japan and Europe, bond yields are down, and not likely to change for about a decade.  We know this is good for American economy, although negative for global growth.

Right now, time is on our side, and in the next seven months, it is likely that home buyers will be facing some great opportunities, “because the Fed is likely to only raise rates twice this year.”  That “will slow the pace of interest rate increases.”

Optimism Key 2: Labor Market Boom

Did you know that there have been 205,000 more jobs created every month since 2011?  If we believe government statistics, this means our unemployment hovers at 5 per cent.

On the dark side, most people believe we can not count on any raises in wages in the near future.

Still, the delicate balance remains.  Even without a raise in the future, many households are discovering they can afford a home, although perhaps not their perfect “dream” home.

Optimism and Common Sense

At Palm State Mortgage Company, we have always advised loan applicants to search for affordable homes that matched their fiscal profile, not dream homes full of financial stress.

So, this caution does not mitigate our bright enthusiasm for 2016.  Freddie Mac even predicted that wages would soon begin to rise.

Optimism Key 3:  Household Formations

The last six months of 2015 saw a sinking in the formation of households, but steady job growth over the next few months is bound to pick up the forming of households. Optimism is on the rise for home buying in Florida with Palm State.

We can not help but smile for America as we keep a close eye on the upcoming weddings of this spring!

Next week we will continue this blog article to include some Freddie Mac conclusions about Optimism Key 4:  Housing Supply and Key 5:  House Prices.

We don’t have a crystal ball at Palm State Mortgage Company, but we can smell the sawdust of new home construction and follow the statistics of real estate pricing as well as cutting edge news on the American and Floridian economy.

We are officially encouraging you to house-hunt this spring and summer, and to visit Palm State Mortgage Company.  We will help you match your dreams with the best possible rates for your financial situation.

Who knows, perhaps 2016, this Year of Optimism, will bring you your dream home?   Thank you for reading today’s blog, and we hope you return for Part II, next week!