Tightwad lenders are prolonging the housing bust and killing home sales, says the National Association of Realtors’ chief economist, Lawrence Yun.
He thinks it's too hard to get a loan these days. Before the housing boom, and the subprime mortgage debacle, the typical person getting a loan backed by Fannie Mae loan had a credit score of 720. Now it's 762.
Bankers say they're insisting that home buyers meet standards even higher than those set by Fannie and Freddie.
That shows up in the default figures. Of loans made in 2009, after the bust, 1.2 percent were in default after 18 months, Yun noted. On those made in 2007, 29 percent went bad.
Lending could get tougher later this year if federal agencies go ahead with proposals to require borrowers to place 20 percent down on a home to get the best mortgage rates, Yun noted
That suggests that US Home Sales are likely to worsen this year, too. In this depressed housing market, if you are selling your house, it’d be hard for you to have it sold.
However, there is always a way to Sell Your House Fast for CASH. For more info, please visit our main website at WeBuyHousesBronx4Cash.com
No comments:
Post a Comment