Despite rapidly rising Silicon Valley property prices, continually low interest rates have kept housing trends on track. A recent report from Freddie Mac takes a look at projected rates of homeownership in the coming years as well as refinancing trends of current homeowners. The rates of homeownership across the county are expected to rebound by 1.9 percent in 2016 and 2.3 percent in 2017. As the economy continues to improve, unemployment rates are also expected to drop slightly.
Silicon Valley Real Estate Owners Should Think About Refinancing
Many Silicon Valley real estate owners have taken advantage of the low interest rates to refinance their mortgages. Since homes have been appreciating in value at a solid rate, this is allowing homeowners to also take out additional money to pay off other debt, travel, and tackle home improvement projects, among other things. Homes across the nation are expected to appreciate, on average, by 5% in 2016 and by 4% in 2017. Thankfully, homeowners and banks are being smart and not biting off more than they can chew, as was the case in the past. The current average loan-to-value ratio for cash out refinances is 69%. This is a great time to play the real estate game with your Silicon Valley property.