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By: Dow Ferrell

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Monday, 18-Jun-2012 08:18 Email | Share | | Bookmark
Things that played into the U.S. housing financial situation rec

The United State's property economy is beginning to see some improvement. Regardless of this the pace is still pretty sluggish. The changes are occurring due to at least three major Things and they include the reduction in rental vacancies, Existing and new homes sales on the rise, and Lower fixed mortgage interest rates in 2012.

Smaller amounts of available rental properties
Home foreclosures and the dim financial outlook has made rental real estate a more attractive option for many families. This has caused rental opportunities to become much more difficult to secure. This has caused these rental prices to slowly growth past that of a typical home loan payment. For people that can qualify, actually owning a home has become the more affordable expense.

Existing and New Home Transactions On The Rise
Current and new home transactions are also on the rise. The U.S. saw new home sales increase by 16.7%, and Current homes by 5.2% based on revenues from last years 1st quarter. If you happen to be in the economy for a home, then this news will benefit you.
With previous sales being impacted by the financial situation and a shaky employment market, many young potential home buyers decided to wait until these economic conditions were more secure. However, with the most recent changes occurring, some of these young buyers are expected to take advantage of home ownership opportunities during this restoration period.

A significant decrease on mortgage loan interest rates
Fixed home loan rates are smaller than ever which is also aiding the restoration. During the first quarter of 2012, the interest rates have fallen below the 4% mark. For new homeowners this makes purchasing a new house a better option. Based on info from Freddie Mac's study, affordability and a genuine interest in purchasing a new home are also higher for many. These new interest rates mean that for many consumers mortgage payments will be significantly Lower. The recommended beneficial resource for this is mediterra homes.

Major hurdles in the application process
Even though there are a lot of indications that show a recovery in the financial situation, there are still a few difficulties. Being qualified for a mortgage can be a huge obstacle to jump through. Although there is a lot more opportunity in the economy, a lot of people still face significant rates of rejections.

These denials hurt the entire market. For whites, Hispanics, and blacks, denial rates have risen. Due to this fact, the families who would sell their existing homes to buy a new house are usually stuck because there are not enough qualified buyers. Another ripple effect that comes from past and present economic problems is some families owe more on their homes than its present value. Existing foreclosure rates are another factor that has industry watchers concerned.


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