Making Sense of the Housing Numbers

Mortgage Market Guide Chairman and CEO, Barry Habib, recently spoke on Fox Business News about the state of the housing market. Barry offered some valuable insight that I believe is worth sharing.

Click here to view:
http://video.foxbusiness.com/v/4210331/making-sense-of-the-housing-numbers

Barry tells us that this is a "market of opportunity". Due to a variety of economic factors across the globe, our mortgage rates continue to bounce off of all-time lows. Couple that with aggressive home prices and the incentives to buy are hard to resist.

Of course, you have to qualify for the loan and lenders have tightened up their guidelines so some will be left out. Some would say this is an "over-correction" but others would argue that reasonable lending standards are being employed. Personally, I'd like to see programs offered again for the borrower with excellent credit and equity in the home without having to fully document their income. The self-employed are a segment of our borrowing population that have been left out in the cold since the Mortgage Meltdown and I believe there are ways to include them.

Barry reminds us that real estate markets are highly localized and that factors such as the local economy and housing inventory will play a part in the "deal" you can get on a new home and how quickly you can expect it to appreciate. This may not be the time to expect big returns on a six month flip but if you are looking to stay in a home for several years the returns could be quite healthy.

Eventually the Fed will have to take their foot of the gas and when they do we can expect these rates to climb back up. So, if you are in position to buy or if you think you'll be in your current home for a few more years and wish to improve your terms, now is the time to seek advice.

Opportunity is knocking. Make sure you answer the door.

Please share this with anyone you know and care about who may be considering a purchase or refinance of their own. They will thank you.