The housing market and the economy are closely related. If people are not confident in the market and aren’t buying homes, home sales will drop whether they are being sold or not. As a consequence, many homeowners will be at risk of going underwater.
The 2008 recession was, in part, triggered by falling home prices and many loans issued at the time were at risk of defaulting. Many people who could afford to pay their loans chose to walk away when they sold their homes. Luckily, confidence in the housing market is rising once again:
According to the HUD National Housing Market Summary, loan delinquencies and home foreclosures are at their lowest since 2007. Loan delinquencies dropped from 6.39 to 5.68 percent (the historical average is around 5 percent). Just the same, foreclosures are down from 4.64 percent in 2010 to 2.27 percent.
With less delinquencies and foreclosures, Kansas City mortgage companies don’t have to pursue deficiency judgments. Especially on those who strategically defaulted on their loans.
The construction of new houses indicates that the demand for housing is rising, and by extension, so is confidence in the market. When homes are built, or even just remodeled, jobs are created. The National Association of Homebuilders estimates that for every 100 single-family homes built it generates:
The increase in jobs means more people can begin to save up to own their own home. This is especially true for first time homebuyers who will be looking for new homes.
It may not sounds like a good thing, but when mortgage rates increase it generally means incomes are as well. While rising mortgage rates can also increase the price of a home, higher incomes means people will be more likely to afford it. As stated, lower home prices generally means that no one is buying homes because they are not confident that owing a home will be a good investment.
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
