Mortgage – Ponte Vedra Beach residential mortgage trend
By David Johnson, Mortgage Banker, Ameris Bank
The following Ponte Vedra Beach mortgage market trend article discusses the good refinance market, continuing low interest rates, increased conforming loan amounts, causes for increased property value and continued high demand for Ponte Vedra Beach real estate. Hint, the Ponte Vedra Beach housing and mortgage market forecast is sunny.
Refinance Rally: As we enter 2021, there does not appear to be headwinds slowing the residential refinance market. Rates continue to be historically low for the classic rate and term refinance. Rate and term refinances offer lower interest rate and mortgage payment for the homeowner than the current home mortgage. Increasing home values create nice equity positions for cash out refinances. Cash out refinances access equity in the home for the homeowner to use for any number of reasons such as home remodel, college expenses and boat ownership among other useful reason. Both refinance types are popular and will continue as rates remain low.
Low Interest Rates: Low rates, increasing values and high demand are driving the Ponte Vedra Beach and Northeast Florida real estate market. Great news for sellers is the continued trend of demand outpacing supply, and the joyous outcome of increasing sales prices. Historically low interest rates are contributing to the positive home sales market because more diverse income levels can qualify. Although it’s impossible to predict the future of interest rates, most analysts agree they will stay low. Any doubters need only look at Fed Chairman Jerome Powell saying the Fed rate will stay near 0% until 2023. Federal fund rate remaining near 0% is contributing to the 2021 real-estate bull run.
Higher loan Limit: Another exciting mortgage trend update for 2021 is the increased conforming loan amount from $510,400 to $548,250 — a 7.5% loan amount increase since 2020. The increase is justified due to a 7% national home-value increase over the past 12 months. In the high property-value Ponte Vedra Beach market, this is good news. With a 20% down payment the higher loan amount means any $680,000 sales price qualifies as a Fannie Mae or Freddie Mac loan amount. Conventional Fannie and Freddie conforming loan amounts offer favorable underwriting guidelines and interest rates for buyers compared to Portfolio Jumbo loans. Like low interest rates, the increased loan amount will help more people qualify for mortgages at better terms.
Migrating Americans: Finally, one more positive trend for the Ponte Vedra Beach housing and mortgage market is increasingly motivated American migration patterns. The continued phenomena of massive Rust Belt and Northeast relocations is driving up home prices and sales in many sunbelt states, benefitting our local market. Hundreds of thousands of Americans continue to relocate to Florida and surrounding states. For varying reasons, people have decided to move themselves and family. A recent example reported by the USPS noted that from March 1 to Oct. 31, 2020, New York City residents filed 295,103 change-of-address requests. It is safe to say tens of thousands moved to Florida. Northeast Florida is seeing an influx of upwardly mobile, wealthy, telecommuting professionals and families. Ponte Vedra Beach schools are top tier for the state, and along with a business-friendly, tax-friendly environment, booming economy and high quality of life has created an oasis for relocating Americans.
In conclusion the forecast is positive for the Ponte Vedra Beach mortgage market regardless if you are buying or refinancing.