Could Home Values Be Stabilizing?
If you have looked through the Refinance Tool Box website, then you are acutely aware of how crucial the current market value of your home is to your refinancing plans. It can mean the difference between a great rate and a good rate or a loan approval to loan denial.
Tougher lender underwriting guidelines have made home value at the forefront of today’s home refinance. Loan-to-Value (LTV) ratios for cash-out refinances have been reduced from almost 100 percent to 85 percent. What’s more is that qualified mortgage rates can change significantly as your LTV increases.
Recent reports on pending home sales and home construction spending have shown a glimmer of hope that the housing market may be stabilizing. At the present time, it is too difficult to tell whether we are in fact at the market bottom.
Pending home sales numbers are most likely being skewed as people scramble to buy-up foreclosure and distressed homes for sale. Mortgage rates are still near all-time lows, so that is only adding fuel to the increased buyer momentum.
There is still an overstocked home environment in the US and basic supply-demand law would point toward some further price drops until the current home inventory is diminished. The good news is that home inventories are being reduced. The bleak jobs environment may slow the home-buying pace a bit, but I think we are heading in the right direction.
We may focus on the micro-view (refinancing) here, but the macro-view (economy) will become much brighter once we have actually hit the housing price bottom. In fact, our US economic recovery depends upon it.
Keep a lookout to the housing market sales reports and new construction spending as a key indicator that we are coming out of the doldrums of our current recession. Also, expect a “loosening of the belt” from both refinance and purchase mortgage lenders once they feel that they can count on solid home values. Lenders are still being very cautious in backing high LTV mortgages in a declining home value environment.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Tougher lender underwriting guidelines have made home value at the forefront of today’s home refinance. Loan-to-Value (LTV) ratios for cash-out refinances have been reduced from almost 100 percent to 85 percent. What’s more is that qualified mortgage rates can change significantly as your LTV increases.
Recent reports on pending home sales and home construction spending have shown a glimmer of hope that the housing market may be stabilizing. At the present time, it is too difficult to tell whether we are in fact at the market bottom.
Pending home sales numbers are most likely being skewed as people scramble to buy-up foreclosure and distressed homes for sale. Mortgage rates are still near all-time lows, so that is only adding fuel to the increased buyer momentum.
There is still an overstocked home environment in the US and basic supply-demand law would point toward some further price drops until the current home inventory is diminished. The good news is that home inventories are being reduced. The bleak jobs environment may slow the home-buying pace a bit, but I think we are heading in the right direction.
We may focus on the micro-view (refinancing) here, but the macro-view (economy) will become much brighter once we have actually hit the housing price bottom. In fact, our US economic recovery depends upon it.
Keep a lookout to the housing market sales reports and new construction spending as a key indicator that we are coming out of the doldrums of our current recession. Also, expect a “loosening of the belt” from both refinance and purchase mortgage lenders once they feel that they can count on solid home values. Lenders are still being very cautious in backing high LTV mortgages in a declining home value environment.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: business, economy, finance, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
3:11 PM
2 Comments:
Hi,
We have just added your latest post "Refinance ToolBox: Could Home Values Be Stabilizing?" to our Directory of Foreclosure. You can check the inclusion of the post here . We are delighted to invite you to submit all your future posts to the directory and get a huge base of visitors to your website.
Warm Regards
Foreclosu-re.info Team
http://www.foreclosu-re.info
Hi,
We have just added your latest post "Refinance ToolBox: Could Home Values Be Stabilizing?" to our Directory of Foreclosure . You can check the inclusion of the post here . We are delighted to invite you to submit all your future posts to the directory and get a huge base of visitors to your website.
Warm Regards
Foreclosu-re.info Team
http://www.foreclosu-re.info
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