When temperatures start to drop and leaves begin to fall, people start wearing different fashions, and adopting new trends and styles. As it turns out, there are also trends in the mortgage industry. For fall 2014, some of the biggest trends for both experienced and first time home buyers include:

Home Buyers are dressing down. Affordability is becoming much more important to new home buyers. According to RealtyTrac, a provider of housing data, millennials (people who reached adulthood around the year 2000), are flocking to affordable housing markets in the Southeast (including Florida) and the Midwest. Improving job markets in these areas is helping to fuel this trend.

Buyers are adopting a conservative image. The affordability trend goes hand in hand with a much more conservative outlook from new home buyers. The financial crisis we just weathered has made many first time home buyers wary. More than a third (36%) of millennials surveyed by the Fannie Mae National Housing Survey said that home ownership was a “risky investment.” These buyers are sticking to their budgets and shopping for bargains.

A relaxed look for credit standards. According to Ellie Mae, a leading provider of software for the mortgage industry, the average credit score for loans that closed in September 2014 was 726, down from 727 in August and well below 2013’s average of 738. For FHA loans, the average score is 682, down from 2013’s average score of 695. That’s good news for potential borrowers.

Rates, like hemlines, may be rising. An economist named George Taylor created a theory in 1926 that hemlines rise along with stock prices, and drop when the market falls. While that theory remains unproven (though a strong correlation does exist), a strong economy generally leads to higher mortgage rates, and the US economy is improving. The Mortgage Bankers Association expects lending rates to climb through the end of this year and into 2015, so now may be the optimum time to buy a home. Similarly, a strengthening economy may encourage more buyers to take the plunge.

Trying on a New Home Mortgage? We Can Help

Just like clothes, mortgages in Florida come in all shapes and sizes. When you’re trying to decide what mortgage fits you best, acquire another opinion from an expert. If you are in need of a trusted mortgage expert, contact me, Stephen Thaggard, at 407-733-6425. I am readily available to help experienced and first time home buyers navigate these fall mortgage trends and make decisions that suit your best interests.


Stephen Thaggard, NMLS 356309,  Sr Loan Officer, licensed in Florida

Embrace Home Loans, NMLS 2184, www.nmlsconsumeraccess.org, 485 N Keller Road, Suite 550, Maitland, FL 32751