Now, nearly six years after the crash, all of the dust and problems of fiscal cliffs storms etc has finally
cleared and we have now a clearer picture of the new housing markets terrain.
Some investors I see are still weary of getting back into the market, housing starts, prices and confidence are on an upward trend and the tide may be turning this year to favor homesellers.
Home buyers can expect a more competitive market in 2013, and I would honestly say a buyer should be pre-approved asap at least three months before they plan to start seriously looking because experts expect the process to take several months under new lending standards so be warned, would hate to show you a home and then it goes in front of our eyes as we where not approved borrowers.
House hunters should be ready to deal right away as in my opinion inventory will remain at low levels throughout the year.
Home sellers are shifting into the driver’s seat now as we will see more bidding wars break out in certain markets due to the low inventory.
NOTE- While homes will sell quicker this year, they still have to be priced right!!!
I am not a mortgage expert but for sure rates will rise and probably reach 4% by the year end.
In early 2012 the nation’s largest banks agreed to put aside $25 billion in the robo-signing settlement to help fund loan and foreclosure modifications and compensate homeowners who claimed they were given unfair lending terms. Experts expect more mortgage rules to be handed down this year to help prevent reckless lending that led to the meltdown.
The Consumer Financial Protection Bureau issued last week that detailed criteria lenders must use to determine if a borrower qualifies for a loan.
The rule states a qualified mortgage cannot extend beyond 30 years or include exotic terms like interest-only payments or negative-amortization payments, where the principal amount increases. Loans can’t carry fees and points above 3% of the total mortgage and limits the total debt-to-income ratio at 43%, whether this will discourage home buyers time will tell.
In many areas pockets of NJ we see low inventory to sell in certain sectors and sizes of house as I said before this puts the seller in the driving seat.
So these extra rules making the process longer could prevent some buyers from being ready, a modest increase in rates therefore may not harm the market only time will tell...
I would welcome calmer waters for when it comes to valuations...lets hope that comes back to a more balanced situation soon and we appraisals not falling short but in fact matching possible closing prices.
Some investors I see are still weary of getting back into the market, housing starts, prices and confidence are on an upward trend and the tide may be turning this year to favor homesellers.
Home buyers can expect a more competitive market in 2013, and I would honestly say a buyer should be pre-approved asap at least three months before they plan to start seriously looking because experts expect the process to take several months under new lending standards so be warned, would hate to show you a home and then it goes in front of our eyes as we where not approved borrowers.
House hunters should be ready to deal right away as in my opinion inventory will remain at low levels throughout the year.
Home sellers are shifting into the driver’s seat now as we will see more bidding wars break out in certain markets due to the low inventory.
NOTE- While homes will sell quicker this year, they still have to be priced right!!!
Mortgage Rates and New Rules
The Federal Reserve has held interest rates steady at near-record lows over the last several years in an effort to entice buyers into the market, and experts don’t expect significant jumps in the rate this year.I am not a mortgage expert but for sure rates will rise and probably reach 4% by the year end.
In early 2012 the nation’s largest banks agreed to put aside $25 billion in the robo-signing settlement to help fund loan and foreclosure modifications and compensate homeowners who claimed they were given unfair lending terms. Experts expect more mortgage rules to be handed down this year to help prevent reckless lending that led to the meltdown.
The Consumer Financial Protection Bureau issued last week that detailed criteria lenders must use to determine if a borrower qualifies for a loan.
The rule states a qualified mortgage cannot extend beyond 30 years or include exotic terms like interest-only payments or negative-amortization payments, where the principal amount increases. Loans can’t carry fees and points above 3% of the total mortgage and limits the total debt-to-income ratio at 43%, whether this will discourage home buyers time will tell.
In many areas pockets of NJ we see low inventory to sell in certain sectors and sizes of house as I said before this puts the seller in the driving seat.
So these extra rules making the process longer could prevent some buyers from being ready, a modest increase in rates therefore may not harm the market only time will tell...
I would welcome calmer waters for when it comes to valuations...lets hope that comes back to a more balanced situation soon and we appraisals not falling short but in fact matching possible closing prices.
No comments:
Post a Comment