
“Despite
some volatility on Wall Street and uncertain global economic outlook, there’s a
lot of freedom for consumers to take advantage of financial opportunities now
available to them,” Community Financial Credit Union’s Vice President of
Mortgage Services Eric Esser said.
Interest
rates remain low despite long-term talk by industry experts of rates rising
over time. In fact, mortgage rates for many terms are actually lower than they
were at this time in 2013.
Meanwhile,
most homeowners have earned more equity in their homes than they have at any
time over the past 10-15 years. Housing values have risen by an average of
15-40 percent in almost all Michigan markets since 2010, giving homeowners the
opportunity to consider upgrades and renovations.
Finally,
the stock market is remaining strong even with the recent volatility. The Dow
Jones Industrial Average, the NASDAQ and the S&P 500 all have more than
doubled since the apex of the economic crisis in 2009, and were at or near
their all-time highs in late October. Corporate profits in the U.S. remain
historically strong, and the outlook for long-term growth appears strong.
“2015
will be a year of opportunity for our members because the fundamentals in the
market remain strong,” Esser said. “However we don’t know when interest rates
will rise and we have been saying that for a few years, but at some point they
will go up. Now may be a time to fund that house project, or to consider
selling your existing home and start shopping for your dream home.”
“Community
Financial has seen an influx of inquiries from its members in recent months
related to mortgages and home equity loans given the relative health of the
market,” Esser said. “And the recent pull-back in the stock market should
encourage investors with a long-term view to consider retirement planning or
college funding for young children or grandchildren.”
“No one
has a crystal ball, but now appears to be a good time for residents of Michigan
to consider where they want to live in the future. It is a less expensive time
to borrow money,” Esser added.
With
Thanksgiving around the corner, there are many things that Michigan residents
can be thankful for. Unemployment in Michigan continues to fall and borrowing
is easier now than it has been at any point in the last five years.
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