Current Mortgage Forecast and Buying Trends for U.S. States in October

Key Points Takeaway:

• Utah, Virginia, Colorado, Kansas, and New York are seeing a breakout in searches by investors according to Google Trends.
• The fourth quarter of this year may see lower interest rates.
• Opportunities grow as the less experienced in recent months have backed away from investing.
• DSCR mortgages provide alternative funding opportunities during higher interest rates.

Top 5 States Looking for Investment Mortgages

Utah

Investment mortgages are paying high earnings in Utah. In all of the counties, house values are anticipated to rise by double-digits, with some possibly rising by more than 10%.

Utah is a seller's market right now since the existing housing stock can't keep up with demand, which will push prices even higher in the face of rising mortgage rates.  There's no need to worry; in fact, this lull in the market means that it's beginning to function as usual again and giving present investors a higher return.

Virginia

The return on investment in Virginia is still good, and home prices continue to rise, making this a great deal. The median sales price for homes in Virginia increased by 7% last July to $385,000. While the state's overall stock of residences is still low, many local housing markets are seeing an increase in active listings.

At the end of July, over half of the state's counties and municipalities had more active listings than they did at the same time last year. Virginia has had a great track record in the past and continues to provide a higher projected return on investment than most other locations.

Colorado

The Colorado market has been undergoing significant positive changes in recent years. With a focus on developing the local industry, increasing production, and attracting more high-paying employment, real estate growth has probably improved more than any other sector or market.

The Colorado real estate market is more competitive than ever, as new homes and apartment buildings are being constructed on a regular basis and real estate investors are increasing in number; earnings are on the rise for investors despite the increase in interest rates this year.

The main goal of investors has been to invest in high-end commercial or residential properties and improve them with the newest innovative home renovation technologies and methods before renting them out to people looking to relocate to Colorado in search of a better job.

Kansas

Kansas City has been recognized as one of the best ten housing markets for investors of rental property to examine. Looking at recent real estate market performance statistics in Kansas City, it's easy to see why. Year-over-year active listings are down by 7%, while average sale prices have gone up by almost 10% over the last year. If you do the math, it's obvious investors are flocking to Kansas.

Many houses in Kansas City are being rented rather than owned as property values climb and become harder to locate. This provides rental property investors opportunities to grow portfolios with higher short-term and long-term earnings potential.

New York

As families decline in purchases, investors are soaking up the market. Rates for home purchases has increased, making it more expensive for family home buyers to obtain financing. DSCR loans make this an easy opportunity for rental investments that the average home buyer does not see.

The rebound in Manhattan residential property after the Covid pandemic was very quick. We saw three-bedroom condos with great views that were often rented out within a week. investors who saw the potential opportunity bought larger apartments post-Covid, knowing that there would be a higher demand for more space.

Mortgage Rate Forcast for 4th Quarter

Not everyone is forecasting a rise in interest rates. Fannie Mae forecasts a rate of 5.7% in the fourth quarter. Mortgage Bankers Association (MBA) is forecasting an average rate at the end of the fourth quarter to an average of 4.375%.

Investment Opportunities are Growing

As noted in the information on the top searched for states for establishing investment mortgages; individual home buyers are backing away for lack of funding after job losses from the covid scare. This provides more opportunities growing for rental property investors as the less experienced in recent months have backed away.

The DSCR Loan Opens Doors

Investment loans such as the Rental Home Financing DSCR loan with no ratio tied to your W2 have been providing investors an open door to expand portfolios that are not available to the average home buyer. This secret allows investors to purchase or refinance based on the potential income of the property instead of tax or employment history.