2012 will bring an end to the housing crisis is what the national news media is reporting. Locally, here in North Texas, things have been turning around already so the national news should only serve to reinforce the good vibes!
So why are the national media news sources all of a sudden changing their tune. The numbers are often saying differently- today I heard mortgage apps were down 2.7% for last month. Is this really movement in the right direction? A 30yr fixed rate mortgage had climbed to a recent high of 4.2%. Is this really moving in the right direction? Well, sort of.
See for months the 30yr fixed rate mortgage has been below 4% and no real signs of improvement. There have been mortgage applications- but no real improvement. Well, as anyone can tell you- you can have plenty of Home Buyers and Home Sellers and Contracts agreed to and Mortgage Applications made- BUT..and here it is folks- here is the change- IF the BANKS DONT LEND THE MONEY then the contracts fall apart and the deals dont happena and the homes are on the market longer than planned and the prices of these homes and surrounding homes begin to fall.
Here are some key recent changes:
- Credit scores needed to qualify in local areas can be in the mid 600s rather than mid 700s of not too long ago
- Loans are now being offered at levels 3.5X earnings rather than the last few years which were capped around 3.2X earnings
- Loan To Value ratios are being loosened up, from low of 74% to current levels of 82%.
So if you were looking to put your home on the market, talk to me or my office, discuss recent listings, sales and pending sales in the area. And if you are considering a purchase then be sure your financial house is in order, talk to me about potential homes that meet your needs and then get your pre-qual letter to know which you can comfortably afford at this time…and then let’s go househunting!!!
Looking forward to working with you!