Is credit as tight as some analysts claim? American Enterprise Institute says no, because first-time buyers with so-so credit flooded the market last month.
Article image credited to Alex Yeung / Shutterstock.com
- The AEI took issue with observations put forth by the National Association of Realtors that credit standards are still too tight.
- The International Center on Housing Risk is contending that first-time buyers are making low downpayments and have less-than-stellar credit.
The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills
Comments
Related Articles
The strong housing market we experienced this summer may have been driven more by current homeowners buying additional properties than first-time homebuyers, the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey suggests. But a recent report from the American Enterprise Institute (AEI) offers the conflicting view that first-time buyers have been gaining market share for several months.
Mortgage Credit Certificates (MCCs) are an attractive option for homebuyers hoping to qualify for a loan in states that run the program. As the program’s tax credits can be used as qualifying income, lenders will underwrite to a higher purchase price than they would otherwise.
With its best year since the recession in the bag, the housing market will likely slow down next year due to ongoing inventory shortages and rising mortgage loan interest rates, the National Association of Realtors (NAR) predicts. The association’s chief economist, Lawrence Yun, took to the stage at the 2015 Realtors Conference & Expo to offer his economic forecast for 2016. According to Yun, the 2015 housing market was supercharged by pent-up demand in the last few years, wage and job growth and rising home values, but existing home sales next year will likely slow to a more moderate pace.
The new TILA-RESPA Integrated Disclosure (TRID) went into effect on Oct. 3, 2015. It’s two months later, and real estate professionals, as well as many buyers, have given the acronym a new meaning: TRID stands for “the reason I drink.”