Courtney Dominguez appears on Yahoo!Finance


Lower mortgage rates are helping to lift
the US housing market new figures out today from the Commerce Department find
that housing starts rose 3.8 percent last month permits for future home
construction soared to the highest level in more than 12 years. Joining us now is
Courtney Dominguez she is financial advisor at Payne Capital Management good
to see you Courtney. Thanks for having me. You say that this report today great
news for future homebuyers why is that? Yeah we’re really we’re in this area
right now I think Millennials have kind of gotten a bad rap over the last
several years but they are a large generation that is starting to start
their own families and buying houses and right now you’re seeing housing starts
go up which is really in line with that and you’re out of time where interest
rates are really low so you can take advantage of low mortgage rates so
you’re finally starting to see that demand really come to fruition what I
see really positive is it’s a really confidence confidence sign that the
consumer is spending right now which is a really big part of our economy. But
also we know that in the housing market yes the demand needs to be there but so
does the supply how does that look especially for first-time homebuyers
those looking to enter the market what supply like right now? Supply has been
really low so there’s actually a really good sign that developers are now
looking at starting new developments bigger developments at a time where it’s
easier to get loans to buy a house for the first time so it’s all really good
thing for a new homebuyer so 30-year mortgage rate averaging what 3.75%
Exactly a year and with the Fed not looking to move really in either
direction on rates at least for the foreseeable future you think they’re
gonna stay around there that’s what the consensus is but I do think as new home
buyers really should be looking to take advantage of that because this time last
year everybody’s guess was interest rates were gonna rise they lowered so we
really never know how these things are gonna go going forward but with rates so
low especially compared their historical averages it’s a wonderful thing to take
advantage of curious where in the country right now you can find the most
value when it comes to housing well with this report that just came out it was
really in the Midwest of the south that we saw all of this increase in demand
and increase in supply the Northeast right where we’re sitting right now is
actually the one that was lowered which was kind of an interesting sign right
now so we are seeing maybe more of the places where people are moving into the
suburbs that’s really where you’re seeing this demand are we starting to
see bidding wars happening now and if so
what parts of the country yeah and again you’re not not seeing that in the
northeast and maybe that’s something with the new tax laws and with real
estate and property taxes so high here you’re not necessarily seeing that as
much but in some of your lower cost states that’s really where you’re
seeing your demand as you look ahead to 2020 anything that you can think of that
might trip up the housing market I think that the biggest thing is going to be
interest rates because this is easily your most interest rate sensitive sector
so if interest rates do stay low I do that as a positive sign for the sector
if they do rise which is not the consensus but could very well happen is
we’re starting to see inflation kick in I think that’s probably gonna be its
biggest deterrent how important is I mean the housing market to the overall
economy we keep hearing about how the consumer is the economic engine right
but we’ve actually seen times where the housing market has sputtered but the
overall economy is doing pretty well how important is housing
yeah housing is about 3% of the economy so it is a substantial stake but not not
nearly as large some other sections but it is consumer spending that is about 70
percent of GDP so seeing a confident in a strong consumer that’s what I see is a
really positive sign and in terms of contractors looking to build what are we
seeing there it’s actually has a lot of contractors are starting new
developments right now which is again was it first-time homes is it apartment
buildings what are we seeing them build it’s more single home owners than it is
multi homeowners right now which is pretty fascinating and you’re coming at
a time right now where Millennials are starting to start their own families and
want their own homes but also you have baby boomers which is the next largest
generation and they’re looking to downsize into retirement right now so
you’re seeing a lot of these these big shifts in two of the largest generations
right now in our country all right it’s actually gonna be an exciting time I
think for housing in 2020 Courtney Dominguez thanks as always.
Thanks for having me.

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