Mortgage Loan Availability in 2013

There are some economists who believe that 2013 will bring about a change in the mortgage markets. This is of course provided that the White House and Congress can reach an agreement on the fiscal cliff. Is this reality or is it more a matter of wishful thinking? After all, since the financial crisis was largely blamed on out-of-control housing prices, too loose lending parameters and record-high consumer spending, perhaps they are reading this all wrong. There are a few glimmers of hope however that may bear out what these economists anticipate such as:mortgage-loan-availablity-20131-150x150.jpg

Stronger housing market

During 2012 in spite of the fact that the economy continues to limp along the road to recovery, there are signs that the housing market is getting slightly better. Some of the latest data is showing that home prices are improving in almost all markets, even those who were the hardest hit by the latest financial calamity.

Interest rates remain low

Because of decisions made by the Fed it is largely anticipated that mortgage rates will remain lower than they have in a number of years. This means that mortgages will be more affordable for a larger swath of the population which could mean not only more mortgages, but could help boost the overall housing market.

First time home buyers

Suprisingly enough, US News and World Report states that first-time home buyers have been largely overlooked during the housing recovery. Statistically, first time home buyers have been responsible for less than 35 percent of the mortgages originated during the recovery. They point the finger at several reasons for this including tighter lending restrictions, disillusion with real estate as a safe investment and of course, problems with government programs such as FHA.

Less stringent requirementsloan-availability-2013-150x150.jpg

As the economy improves, there is a chance that lenders will be less reluctant to make loans. This could mean an easing of credit availability for car loans, new credit cards and of course, for home mortgages. This is a good thing because not only will more people be able to own their homes but this can also mean an uptick in the housing market.

As we start the countdown to 2013, the signs of economic recovery are nearly everywhere we look. Unfortunately, much of what will happen with the economy will rest firmly on our elected officials to not only deal with the impending fiscal cliff but also the debt ceiling debate which is widely anticipated to be contentious. For consumers however, the opportunity to refinance their existing home or buy a new home does appear to be stronger than ever before. If you are uncertain about whether this is a good time for you to invest in a new home or refinance your current mortgage, contact Core Mortgage Financial. We will help you determine if this is the right time for you to be searching for a new mortgage with rates at historic lows.

Disclaimer: This article is for informational purposes only. NMLS #849597

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