The housing market has exhibited slow recovery and a weak start to the busy spring season, but despite these facts, home prices still increased for the eleventh consecutive quarter.
The states that exhibited the top annual appreciation in the country are 1.
The Home Price Index is calculated using home sales prices on conforming, conventional mortgages either sold to or guaranteed by government-sponsored enterprises (GSEs),
According to National Mortgage Professional, the sales of new homes being built has picked up. The percentage of newly built single-family homes increased 6.4% in April of 2014. The rate of new homes being built was depressed after the mortgage crisis and for the years that followed. The increase in new homes being built indicates that people are beginning to have a renewed perspective on the housing market and their actions reflect more confidence in the housing market and the U.S. economy as a whole. The article mentioned that, "Builders are gradually increasing sales, but tight credit conditions, particularly for first-time home buyers, are impeding a more robust economy".
Current tight credit conditions are inhibiting many Americans for getting into mortgages and as a result it is impacting the growth of the housing market. In a recent speech, FHFA Director
Due to stringent regulation placed on lenders in response to the mortgage crisis of 2008, the credit score that a typical borrower needs in order to obtain a guaranteed loan is significantly higher than it was in the past. CNN Money refers to the heightened credit score requirement as "higher than we would expect given economic fundamentals". The same article included information from credit rating agency, Moody's, suggesting that if the credit scores that were accepted by lenders was the same as it was before the housing bubble burst, "then the pool of potential mortgage borrowers could increase by more than 12.5 million households". If this is true, it means that there is an untapped market in the millions that is currently being locked out of the housing market by lenders.
The FHFA has also outlined plans to provide education to homebuyers as a result of providing homebuyers more access to credit. A new FHA housing counseling program is aimed to launch later in 2014. The program is called Homeowners Armed With Knowledge, or HAWK. The program will offer "a 50 basis point reduction on the upfront mortgage insurance premium and a 10 basis point reduction in the annual premium at the time of the loan origination for first-time homebuyers who complete the program," says Realtor.com. On top of those reductions, any loans that remain in good standing during the life of the loan could receive reductions, which could thus save thousands of dollars for the homeowner on the total amount spent on the mortgage. The HAWK program will encourage home buying while simultaneously empowering homebuyers by providing them with more knowledge about the mortgage process.
Broadview Mortgage values the opportunity to educate consumers to understand which direction that their current or future mortgage is taking them in. If you have any questions about the information herein, feel free to reach out to the Author,
Since 1988, Broadview Mortgage has distinguished itself through honest business relationships with clients, loyalty to employees, and commitment to empowering and educating those communities. Broadview Mortgage is a mortgage banker and direct lender made up of loan officers with years of experience in the firm and sheer excellence in customer service. The firm works to explore several financial solutions from which it's clients may choose. Business is initiated and conducted on a word-of-mouth basis. Broadview Mortgage is a delegated underwriter for the
Read the full story at http://www.prweb.com/releases/2014/06/prweb11921801.htm
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