Mortgage Market Meltdown?
The mortgage market is hurting and the effects of all those mortgage loans given to cash-poor homebuyers is starting to rear it's ugly head. Homeowners are defaulting, mortgage lenders are closing their doors meanwhile prospective sellers are putting their homes up for sale in a real estste market that is relatively flat. The surprising thing is that home prices are not falling by much. People and companies involved in the real estate industry are hoping for a big spring thaw for the real estate market. Read more about it.
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Posted, in Business News, by Nora Richardson on March 12, 2007 | Permalink
Comments
I donot see a big spring thaw. it is much worse than anyoen thought.. only buyers cna be smiling right now as rates are low and prices are declining. The end is in sight once the credit market opens back up. meanwhile, you can always Compare mortgage rates and terms so they don't end up like th erest in the sub-prime fallout. Actually it is the ALT-A as well.
Posted by: jerry schaub | October 19, 2007
Because of the subprime market collapsing, lenders are tightening their underwriting guidelines. I'm seeing credit score requirement of 680+, lower LTV and Stated Income option being eliminated. In the next 2 years, a HUGE number of adjustable rates are going to reset. Most won't be able to refinance because home values have gone down resulting in lower home equity and lenders requiring higher credit scores. Thus resulting in more defaults adding to the growing number of foreclosures. Right now, we have 5 years worth of inventory of houses. The only good thing about this mortgage mess we're in is about 150,000 mortgage professionals have left the business and that probably include all the unscrupulous brokers and loan officers. It helps to find a honest mortgage broker that's been around for a long time, experienced and able to find you a variety of wholesale loan programs.
Posted by: Gina | November 28, 2007
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Posted by: Bill Fisher | May 28, 2008
Well, it looks like news from one of wall street's forecast gurus say the housing market will recover at best by the end of 2009. so let's count on 2010..huh?
at least mortgage refinancing is still fairly low. When they rise more , maybe our economy will be better....tough decisions for the federal reserve to make.
Posted by: Adam chandler | May 30, 2008
Good post. With the UK Market is volatile as it is at the minute no one is sure whether now is a good time to buy or not. 15% dip in the last few months. Will it go lower or recover?
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Posted by: Derek Hosewood | June 13, 2008
Real Estate is local...always has been always will be. You have to go local to find out what is really going on. National news is just that. I have been keeping my up to date with local numbers and trends. Turn off the news. Frederick MD Homes and my Blog Frederick Real Estate News
Posted by: Bob Carney | June 22, 2008
The worst of the housing crisis is most definitely not over. In the last two years housing prices have dropped 18 percent and foreclosure rates are at a 33 year record high. This is probably the worst housing crisis since the depression! This crisis not only has the ability to cause a recession and will impact the overall U.S. economy.
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Posted by: PGS Real Estate | July 19, 2008
Of course recessions generally have a negative effect on the economy. New homebuyers, however, should welcome recessions because they normally lead to a drop in mortgage rates.
Posted by: Peter Williams | July 24, 2008
According to NAHB New-Home Sales are approaching a bottom they state that , while new-home sales have exceeded starts for-sale in recent times, new-home sales volume has continued to trail downward but at a slower pace than last year. The NAHB forecast shows that a bottom for new home sales will happen before the end of next year, followed by a 10% gain in next year in 2009 If this sales pattern happens it will produce a very big improvement on the housing inventory front and will lead to an up turn in housing starts by the second quarter of next year – that is assuming there is an adequate supply of credit for residential development and construction. Homes
Posted by: Michael Walrath | August 22, 2008
how can the banks get away with such greedy and bad corporate governance the banks who approved bad loans should be punished not helped out
Posted by: Mathew | September 14, 2008
The UK market seems to be in just as big a mess without any so called sub prime as many of the loans seem to of been fundamentaly based on cheap credit
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Posted by: lucia | September 14, 2008
Excellent points. I agee wholeheartedly and wish that you would keep up your good work with this topic. More people need to understand what you are saying here :)
Posted by: Dave R | September 20, 2008
I think it is a very difficult problem to solve we need to see a higher degree of mortgage lending at realistic rates to people that can pay them back. Even with the financial system working properly this will be very difficult to achieve, if it was easy the banks would not have lowered standards/criteria in the first place?
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Posted by: Rhodri | October 13, 2008
It seems greed is more to fault than any of other systems in place. It's a shame what has happened.
Posted by: Flat Fee MLS Listing | October 27, 2008
I agree with a previous comment ... Real Estate is local. I deal with Real Estate in Rochester MN and our market is much more stable than it is on the coast. Unfortunately what consumers see and read on the news is what they believe to be true across the board which isn't always the case.
Posted by: Beth Nordaune | October 28, 2008
I believe the housing and mortgage crises is setting us up for something great in the future. We have to stay positive. :-)
Posted by: Brad Thompson | November 3, 2008
No big-thaw happened last year, this year, or will happen next year. There is a high likely hood that the world markets may collapse even further. It doesn't matter if it's California home loans, the New York stock exchange, or commercial property, if markets remain unstable, people will not invest. If there's no money circulating, economies will crash!
Posted by: Joe A. | November 24, 2008
It looks like the first half of 2009 won't improve significantly. There most likely will even be an explosion of foreclosures as the moratorium on foreclosures in place with Fannie and Freddie expires in January. The silver lining is that it all represents a huge investment opportunity. Keep up the good work!
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Posted by: Jodi S. | December 28, 2008
Lower rates will make the turn around but loan qualifing must not go back to loose standards of previous years.
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Posted by: George | December 31, 2008
If only we could go back in 2007. No one expected the house market to go down that much. Even doing Simulation pret immobilier wouldn't have helped.
Posted by: Alex | January 24, 2009
the real estate trend that we are currently experiencing is long overdue as many exploitations were afoot for the last four years, those that involved lending practices, building quality, sales tactics, and closing company charges which bordered on outright extortion. This correction wil only be delayed if we keep pumping tip money into the banks. http://careyrealestateservice.com
Posted by: tina | January 26, 2009
I think the best we can hope for is a leveling of house prices in 2009.
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Posted by: Frank Polenose | February 4, 2009
I know at Minnesota Home Loan a big problem many home owners are facing is that their home values have sank so much they are unable to refinance their home or get a new mortgage with a lower rate.
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Posted by: Inventory Management Software | February 18, 2009
Good real estate info. Thanks for the read!
As far as the real estate bubble goes, it looks worse in San Diego.
I came across a San Diego real estate broker's blog post that is to be the only one I've seen that does not spout the 'industry line: "It's always a good time to buy real estate." This broker calls it like it is. No it's not PC, but it is amazingly informative and insightful.
Bob Schwartz, the San Diego real estate broker who publishes the blog, wrote a great article back in 2005 that predicted today's huge home deprecation. You can read this article at: San Diego real estate the url is:
http://www.brokerforyou.com/brokerforyou/?p=11
George
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Posted by: George | February 20, 2009
Shame this isn't showing much signs of slowing down.
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Posted by: Frank Polenose | March 5, 2009
It looks like the first half of 2009 won't improve significantly. There most likely will even be an explosion of foreclosures as the moratorium on foreclosures in place with Fannie and Freddie expires in January. The silver lining is that it all represents a huge investment opportunity. Keep up the good work!
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Posted by: Mark | March 12, 2009
Let's hope that by the end of this year things start to improve.
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Posted by: Karl Ranworth | March 26, 2009
In the UK lenders have taken the billions to pay off their debts rather than use the money to enable realistic lending again.
Not only is it difficult for those with a blemish on their credit history to get a mortgage, first time buyers are required to find a 20% deposit to get on the property ladder. An impossible task with first time homes averaging over 100K
Posted by: Mortgage Broker | April 6, 2009
Due to government incentives and lowering of mortgage rates there has been an increase in home purchases in the Lexington, Kentucky area.
Some of my clients have had problems obtaining financing however.
www.sellmelexington.com
Posted by: Miranda Hinchman | April 11, 2009
Thanks for this great post. A very helpfull summary I have to say.
Thanks again,
Posted by: Tom | April 21, 2009
I believe the housing and mortgage crises is setting us up for something great in the future. We have to stay positive. http://www.gardenmanuals.com/index.php/planting-flowers
Posted by: Flower Gardening | April 24, 2009
Wow. How times have changed. Housing prices have definitely dropped now. The problem is, most people don't have money.
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Posted by: Tina Marcano | April 27, 2009
Atlanta Real Estate Is really Starting to Pick Up Especially along the ga400 corridor.
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Posted by: brad | April 28, 2009
Now, luckily, President Obama has enacted his "Making Home Affordable" plan which will allow homeowners a chance to easily refinance a home mortgage . Homeowners everywhere will take advantage, mind you at all taxpayers expense, to save money on their mortgage.
Posted by: M Petrone | April 30, 2009
Due to government incentives and lowering of mortgage rates there has been an increase in home purchases in the Lexington, Kentucky area.
Some of my clients have had problems obtaining financing however.
Posted by: jibon | May 5, 2009
Halo, I like your opinion. Great sharing information.
Your article very unique and original.
Thanks to sharing with us. I hope to be your friend.
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Posted by: amanda | May 18, 2009
The real estate industry won't be affected much by the crisis
Posted by: Len | May 31, 2009
This makinghomes affordable.com program really does seem to be helping no one in the long run. All of the making homes affordable peolple will still lose or walk away from their homes eventually. No matter how much you lower their payment they still owe 50%+ more than the home is worth.
Posted by: janet Trundle | June 1, 2009
It's all covered here makinghomesaffordable.com and man are we all in trouoble. WAKE UP AMERICA
Posted by: Kipp Jones | June 1, 2009
I think that's a good post. It's important to keep positive. We have to look for the good in everything.
Posted by: Warakit | June 6, 2009
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful and beneficial to your readers
Posted by: Garden Tools | June 12, 2009
I was visit daily by reps from these sub-prime lenders who was selling these types of loans to borrower will either no money or bad credit. You can probably guess that not many of these are still around.
One of the worst one was the first to close it's doors. BNC Mortgage was own by Lehman's, which eventually close up shop , too.
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Posted by: Ann | June 21, 2009