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[ F1 News: ] housing solutions

on May 17, 2012 in HARP Refinance | 41 comments

by Grumbler% – | housing solutions article by Alex Vitti mortgage rates remain near lows for the coming year, while property prices are expected to remain flat, the Mortgage Bankers Association chief economist said on Tuesday. And both are expected to do little to inspire someone to buy a house. Right now, many tenants contents are still renting, Jay Brinkmann, chief economist for the group said, at the annual meeting of the MBA in Chicago this week. “As we see the first stories about rising prices, the market begins to pick up something,” he added said.Rates on the 30-year fixed-rate mortgage averaging 4.4% next year are expected, after averaging over 4.5% in 2011 , according to the MBA forecast. Prices are expected to climb to an average of 4.9% in 2013. This expectation of low rates and low prices of what is to keep consumers remained stubborn. “Consumers are pretty well in tune,” said Doug Duncan, chief economist for Fannie Mae, adding that “a good handle on the fact that prices will not rise anytime soon.” The Housing Market is in its fifth year of a 10-year-adjustment of prices, Duncan said, informed the reporters at the meeting. He expects a 3% decline in prices from now until early next year, without fire sales, with prices flat the rest of 2012. And that means another weak year for the mortgage industry. total there is 0 billion in financing volume expected in 2012 – the lowest volume for the industry since 1997, according to the MBA. Originations are expected to reach 0.2 trillion in 2011. Next year, funding is expected to fall significantly, coupled with only a slight increase in mortgage to buy a house. Of course, any prediction is these days with a number of limitations. Europe may already be in recession, and the failure of Greece is a foregone conclusion, said Brinkmann. A recession could move across the pond to the United States into a mild recession, he added. “When the economy goes into recession remain, prices would be lower for longer, but we do not anticipate that they would fall substantially. When the economy recovers quickly, could be faster even with the Fed’s operating Twist, longer-term rates” Brinkmann said.The road ahead Despite rising uncertainty, could little things done to improve the housing market, said Mark Zandi, chief economist of Moody? s Analytics, who spoke during a MBA panel discussion. “I do not think our problems are overwhelming. I think they are manageable and do not think we need a big thing, going to have to solve our problems. We just need a few things to do around the edge, and the case will be in a better place for a year, a year and a half from now, “Zandi said. One of the ideas, the major discussion at the meeting was given was the government’s request for proposals on how to transfer foreclosed properties to rent. Read more: U.S. moves to sell, rent or lease 92 000 foreclosures “This could really make a difference in prices … in markets where foreclosures are concentrated so high,” said Jared Bernstein, a panel member, former economic policy advisor . Vice President Joseph Biden. The objective would be to take some of these distressed properties from the housing market, a need in some communities for several rental properties, while stabilizing property prices, he...

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