Nationwide Real Estate Market About To Slide Further!
Like a carnival free-fall ride that stops suddenly, teasing riders into a false sense of safety before plummeting the rest of the way to the ground, some economists say the housing market could once again be headed for a plunge after slowly clawing back some of its 2008 losses.
It is rare that a combination of government factors depresses the real estate market, but projections indicate a slump of 10-15% in prices may be coming our way.
After a 36 month departure from the peak of the real estate market, the topic of the day is still real estate and the current trend in prices. Chicken Little Syndrome initiated the bust and has continued its decline, even though we did have 7% appreciate across the nation this year
Increasing its loan standards may seem counter intuitive to anyone who is familiar with the function of the FHA, and the changes it is proposing will make getting a home loan a little harder.
Using the huge number of loan defaults, the FHA reasoned that raising the required down payment for buyers with the lowest credit, increased the PMI premiums for its loans, and reduced the amount of seller pre-paids and closing costs allowed.
Conventional loan programs are having a hard time placing loans with qualified borrowers, who are turning to FHA financing for easier loans
Due to these trends many borrowers are considering the FHA as their only source available for financing their home purchases, which means the government will be backing even more loans than the already burdened Fannie Mae and Freddie Mac do. Being forced to utilize FHA type loans, many buyers are finding a great resource in them in a time when conventional loan money is more than difficult to get. - 23218
It is rare that a combination of government factors depresses the real estate market, but projections indicate a slump of 10-15% in prices may be coming our way.
After a 36 month departure from the peak of the real estate market, the topic of the day is still real estate and the current trend in prices. Chicken Little Syndrome initiated the bust and has continued its decline, even though we did have 7% appreciate across the nation this year
Increasing its loan standards may seem counter intuitive to anyone who is familiar with the function of the FHA, and the changes it is proposing will make getting a home loan a little harder.
Using the huge number of loan defaults, the FHA reasoned that raising the required down payment for buyers with the lowest credit, increased the PMI premiums for its loans, and reduced the amount of seller pre-paids and closing costs allowed.
Conventional loan programs are having a hard time placing loans with qualified borrowers, who are turning to FHA financing for easier loans
Due to these trends many borrowers are considering the FHA as their only source available for financing their home purchases, which means the government will be backing even more loans than the already burdened Fannie Mae and Freddie Mac do. Being forced to utilize FHA type loans, many buyers are finding a great resource in them in a time when conventional loan money is more than difficult to get. - 23218
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posted by X - Men @ 5:40 AM
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