This information is based off of a report from one of my lending partners. It's very upbeat.
Most Americans Say Now Is The Time To Buy:
A recent Fannie Mae survey showed that close to two-thirds of Americans believe the time is right to buy a house, with a majority believing prices will be the same or higher over the next year.
Many of the MI companies are easing guidelines. Effective today, a number of our MI partners are insuring second homes.
The 64 percent that said it is a good time to buy is just shy of the 66 percent that said the same thing back in 2003 as the U.S. housing market was racing higher. This go around, we'll need to be prepared to fully document income on every loan. Knowing the differences between FNMA and FHLMC guidelines will also be key (there is no max DTI on FHLMC AUS). LO's will need to know the MI overlays. FHA may represent as much as 60% of the purchase money market. We have help and training tools for all of these products.
In a separate report, Pending Home Sales rose sharply in February. The National Association of Realtors reported that contracts for pending sales of previously owned homes rose 8.2 percent. First-time home buyers need to sign a contract before the end of April and close the transaction before the end of June to be eligible for the $8,000 tax credit. According to these results, there does appearto be a rush to take advantage of the credit with many Realtors reporting multiple offers on a single home. Buyers who are selling a home and purchasing a different one are eligible for a $6,500 tax credit.
Subprime Delinquencies Fall For First Time In 4 Years:
Subprime mortgages are simply loans that did meet Fannie Mae, Freddie Mac, FHA, or VA standards. The massive onslaught of subprime delinquencies was one of the main culprits in our housing slump. So it is great news that for the first time in 44 months, delinquencies bucked their trend and actually improved to the best levels in 2 years.
With Unemployment decreasing, delinquencies falling and home prices increasing, this could shape up to be a much better Spring/Summer housing market than last year.
These results reflect a national survey and may not completly reflect what the New England market looks like. In any event, It is nice to see a solid overall report.
Jason
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