NOVA Homes Blog: Challenges Facing the 2015 Northern Virginia Real Estate Market

Wednesday, January 7, 2015

Challenges Facing the 2015 Northern Virginia Real Estate Market

The real estate market has been gaining traction over the past few months and both homebuyers and sellers are poised for success in the new year. But that doesn't mean there will not be any challenges to overcome— two of the biggest hurdles to jump in the market this year include rising mortgage rates and tight lending criteria.

Mortgage Rates
The 30-year-fixed-rate mortgage has been sitting below 4 percent for months, but not for much longer. Economists are projecting rates to push up to 5 percent by the end of the year, with a mid-year boost pushing them into the mid 4 percent range.

In addition, if the economy continues on a solid path as it has been, the Federal Reserve is likely to increase their rates. As a result, the real estate market will be directly impacted, especially in affordability. Those already paying the majority of their income toward housing will feel the increases the most.

Northern Virginia homebuyers would do well to note the current low costs of buying a home and make a purchase in early 2015 to avoid these imminent changes.

Lending Criteria
Although Fannie and Freddie will offer 3 percent down mortgages, lending criteria is still tight. Many homebuyers are struggling to qualify for a mortgage and are unable to take advantage of low mortgage rates and programs.

According to the latest REALTOR Confidence Index, "the increase in mortgage insurance premium payments for FHA-insured loans continued to be reported as an added financial strain for first-time buyers." Obtaining FHA financing for condominiums—oftentimes the first step in homeownership— proved to be another issue for buyers.

As your local Northern Virginia real estate expert, I have decades of experience to help you navigate the market in 2015. Whether you're looking to buy a new home, sell your current property or have questions about the right time to make a move, I am here to help!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
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When you first meet Earle, she greets you with a firm handshake and a broad smile. She has a certain charm and friendly nature that immediately set you at ease. As you talk to her, she listens intently. You can see by the earnest look on her face that she’s already developing ideas and strategies to accomplish your goals. By the end of your conversation, you’re surprised that someone can have such a clear understanding of your needs after just one meeting. This is the essence of Earle’s real estate service. She’s a straightforward businesswoman who doesn’t let up until her clients are satisfied.
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