Realty World - Success Plans, Inc.

Loosening credit in 2012

Jonathan Lee — Fri, 03 Feb 2012 19:46:00 +0000

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.
The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

INTEREST RATES???

Jana Lee — Tue, 17 Jan 2012 17:01:00 +0000

Image by RambergMediaImages via Flickr
What next??? The interest rates are going to go up starting in March. What else is going to happen to our real estate market? The buyers? The sellers?
We can never really predict what the market will do to our buying power. We can only plan the best we can and jump through the hurdles put in front of us.
I cannot express how important it is to line up all your “ducks” and ready them for when that right house comes, you are then in position to GO FOR IT.
With all the new legislations, rules and guidelines, buyers have to be better prepared before entering into this major purchase. Buyers don’t have the time and money to waste. TIME IS MONEY…in every meaning of the phrase.
Follow the ABC’s of buying and selling real estate and listen to your agent.

Fair Practices?

Jeff Tung — Wed, 28 Dec 2011 20:24:00 +0000

Here we are again. It seems like every governmental agency has it’s favorites. Remember the huge governmental bail outs, well here’s another example of government unfairness. RESPA seems to also have favorites too. Is this really going to help consumers?
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HAPPY HOLIDAYS

Jeff Tung — Wed, 21 Dec 2011 23:32:00 +0000

I just wanted to wish you a very merry holiday season and I hope to bring you better news about the real estate market place. in 2012. I believe the market will be similar to this year but hopefully it will get better.
With all of the crazy things that are happening today and during the year, I think it’s time to spend some quality time with friends and family. They have been with you through the good times and bad. So let’s be thankful for having people around you that really cares about you.

Happy Thanksgiving

Jeff Tung — Thu, 24 Nov 2011 18:56:00 +0000

Just wanted to wish everybody a safe and happy Thanksgiving.