Good news for both home sellers and buyers when it comes to opportunity at the end-of-the-year.
While it is still a sellers market, homebuyers are can take advantage of low mortgage rates while lenders are showing forgiveness for those who foreclosed in previous years.
If you are in the market to buy or sell a home, consider these current housing trends:
Home prices cool off. The summer sizzled, and so did the housing market. It's likely we will see it cool down just a bit over the upcoming months. The upside is that potential homebuyers can take their time and not be rushed or pressured into a sale due to the fear of climbing prices.
Banks are loosening up the reins. With rising mortgage rates, homeowners aren't rushing out to refinance like they once had. Homebuyers are now the lender's target audience and they are doing whatever it takes to get their business.
Underwriting standards are expected to loosen in coming months as lenders turn their attention towards buyers
Distressed buyers are making a comeback. The Federal Housing Authority is now making it possible for people who were troubled by foreclosures or short sales to make another go at trying to buy a home. The three-year waiting period to apply for a loan has been shortened to one year if the buyers can demonstrate that a reduction in income or a job loss was the reason they lost their previous home.
Potential borrowers must have all their documentation showing they lost at least 20 percent of their income for six months, but that they've been able to pay their bills on time for at least one year.
Mortgage rates stabilize. Mortgage rates spiked this past summer, but it is likely that they will level out as the Federal Reserve will keep rates low and keep pumping the economy with cheap money.
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