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.
A trio of gathering government storm clouds will be responsible for the drop that some predict could mean another 10% to 15% slump in prices, they say.
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
The first shoe to fall was last week's Federal Housing Authority announcement that it would tighten its loan standards in light of defaults that had pushed the agency's reserves well below its mandated level.
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. With conventional loan sources completing fewer and fewer loans on a daily basis, the necessity for FHA loan programs is increasingly supporting and boosting our real estate market and our economy in general. In a market where every cent can be important, utilizing FHA financing may be the best way home buyers can successfully navigate the tough world of real estate. - 23196
A trio of gathering government storm clouds will be responsible for the drop that some predict could mean another 10% to 15% slump in prices, they say.
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
The first shoe to fall was last week's Federal Housing Authority announcement that it would tighten its loan standards in light of defaults that had pushed the agency's reserves well below its mandated level.
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. With conventional loan sources completing fewer and fewer loans on a daily basis, the necessity for FHA loan programs is increasingly supporting and boosting our real estate market and our economy in general. In a market where every cent can be important, utilizing FHA financing may be the best way home buyers can successfully navigate the tough world of real estate. - 23196
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