Mortgage News For 2014; Happy New Year
Happy New Year 2014 Everyone. Millions of Americans have set New Years Resolutions whether it is losing weight, working harder, paying off their debts and credit cards, saving money, or buying or selling a home.
Recap Of 2013
2013 was a great year for the housing market and many areas throughout the United States have seen double digit price appreciation. There are many areas in Florida where homes were selling about list prices and there were price wars. Thousands of homes were selling the first day the home was listed. Mortgages were easy to qualify and many mortgage lenders had minor or no internal mortgage overlays in their underwriting guidelines. It is obvious that the real estate crisis is now over and foreclosure rates have substantially drop to pre-2008 levels. New home builders are back in the mortgage news where it was very hard to see any builders in the past several years. Residential home values have really spike in mid 2013 to record levels and has since stabilized and there is no correction in the works for the near future. New mortgage news in 2014 include new mortgage rules and regulations which can make mortgage lending a little tougher than 2013.
Mortgage Rates For 2014 And The Federal Reserve
The Federal Reserve plans on buying mortgage backed securities which is a good sign that mortgage rates will still be stable and not spike up. The Federal Reserve Bank is buying mortgage backed securities of about eighty five billion on a monthly basis in the past year. Speculators and analysts are expecting that the Feds will continue to purchase mortgage backed securities as long as the unemployment record still remain stagnant. The Obama Administration is downplaying the number of unemployed Americans but experts believe that the actual unemployment rate is in the tune of 15% to 20%.
Millions Of Americans Still Hurting And Recovering By The Second Great Depression Of 2008
American have not witnessed such an economic meltdown like the Second Great Depression of 2008 where they have lost their businesses, careers, jobs, homes, and everything they have worked so hard for. The majority of homeowners have literally witnessed the hard earned equity evaporate from their homes and real estate holdings. Thousands of Americans have lost their retirement accounts and other investments and were forced to delay their retirement or go back to work after retiring. Millions of Americans are still unemployed or underemployed. Many do not have full time jobs and are working menial jobs where they are overlqualified. Over 50% of the mortgage companies have gone out of business and new mortgage news and mortgage rules and regulations have wiped out half of the practicing mortgage loan originators into retirement or out of business. Thousands of homeowners have yet to recover and are still having a hard time in making ends meet. However, there seems to be a light at the end of the tunnel. I notice everyday on folks who had prior bankruptcies and foreclosures look to get pre-approved for a new home. Many of these folks still have not passed the mandatory waiting period but they are on the right track.
Mortgage News Outlook for 2014
Mortgage rates have spiked up over 1.0% this past year which abruptly halted the refinance boom of 2013. The abrupt halt in the refinance boom due to a sudden spike in mortgage rates have caused many hardship on mortgage companies and mortgage loan originators who specialize in refinancing. Mortgage rates are not expected to drop but the good news is that mortgage rates are expected to remain at the same levels throughout 2015. This is great news for home buyers and the housing market. Although the housing crisis seems to be over, a full recovery is still years away. Thousands of homeowners are still living in their homes which is still underwater.