What Could Stall the Housing Recovery
Higher caps on federally backed mortgages allowed more buyers, who might have otherwise been unable to buy a home, to qualify for those loans. Now that the housing recovery is gaining steam, the government is trying to reduce its role in the mortgage market. A spokesperson for the FHFA says that the agency shares the administrations view that a gradual reduction in loan limits is an appropriate and effective approach to reducing taxpayers mortgage risk exposure, shrinking the footprint of Fannie Mae and Freddie Mac in the marketplace, and expanding the role of private capital in mortgage finance. But analysts caution that lowering their caps could have a domino effect on home sales. Many borrowers who use the maximum dollar amount of Fannie Mae and Freddie Mac loans tend to live in high-cost areas and rely on these mortgages to buy homes. If theyre unable to get financing, given that the private mortgage market is more selective, sales could stall and prices as a result may drop, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla.
For the original version including any supplementary images or video, visit http://finance.yahoo.com/news/housing-markets-squeezed-120214467.html
Housing Markets Where Home Listings Spiked This Summer
The season began with significant inventory shortages creating pent-up demand in local markets with buyers waiting eagerly for homes to come on the market. Sellers who were able to list their homes in April property management in maryland experienced multiple offers and short time on market with little competition from neighbors. As the season closed, significant month-over-month inventory increases added more competition to the April seller’s markets and slowed price acceleration and time on market. “Top 10 Housing Markets Where Homeowners Wish They’d Listed in April” includes the markets with largest increases in inventory from April 2013 to August 2013. While many of these markets are still seeing year-over-year price increases and short time on market — sellers who wanted to take advantage of very low competition and extremely quick times on market likely would have been better off listing their homes in April.
For the original version including any supplementary images or video, visit http://realestate.aol.com/blog/2013/09/12/housing-markets-where-home-listings-spiked-this-summer/
It was a way to fuel the market to get it back on its feet. Now that it appears the housing market is doing well, the government wants to pull back a little. While the government has not reported exactly how much it wants to reduce the cap, Lending Process Services, a mortgage-data tracking firm, shows that reducing the cap just by $25,000 would have a huge impact on the housing market.
For the original version including any supplementary images or video, visit http://markets.financialcontent.com/stocks/news/read/25130757/What_Could_Stall_the_Housing_Recovery