Buying a home can be extremely exciting but also a terrifying prospect as this could be one of the most important investments in your life. There will always be some risk however these are 3 signs to limit that risk and make sure you are making a good investment.

1.Unemployment stays low.

With the generation of roughly 2 million jobs this has had a direct effect on consumer spending. With Phase 1 of the trade agreement with China announced in January this has eased pressures off business of the threatened tariff war meaning sustained rising wages. 

2. Mortgage rates to keep up with housing demand.

The Fed have been maintaining a low interest rate policy so we are expected to see the following:

• 30 year fixed mortgage rate is expected to average 3.8% this year.
• 15 year fixed mortgage rate is expected to average 3.1% this year.
• The largest home buying group 25 - 34 years old, 46.5 million total.

Low mortgage rates are key to making homes affordable, particularly for the 25 - 34 year old group. With these factors a prediction of a 4% growth of new homes and existing homes is expected for the year.

3. Housing supply to keep up with demand.

One of the biggest issues that has been constant has been housing supply to keep up with demand. This is expected to increase from last year but still not quite meet the demand. The key is maintain the pace of the new constructions for the year.