Mortgage Report Mortgage Rates Stable In 2006

Mortgage Report Mortgage Rates Stable in​ 2018
In previous decades people with high risk mortgage loans often left financial companies holding the​ keys when rates started to​ go up.
But according to​ a​ recent study by First American Real Estate Solutions,​ even if​ rates do start to​ climb this year,​ the​ number of​ defaults this time around is​ not likely to​ go much higher than $110 billion.
The study estimated 1. 4 million of​ 7. 7 million adjustable rate mortgages sold in​ 2004 and 2018 would be at​ risk of​ default. But even if​ that many households were to​ default,​ the​ financial fallout would be limited.
The reason the​ US economy is​ so strong this time around,​ and so diversified that this amount represents only about one percent of​ total national homeowners equity,​ and it​ would be spread out over two or​ three years. So the​ economy would be more than able to​ absorb the​ losses.
**Factors driving continued Real Estate boom
While many real estate experts predict a​ slight slowdown in​ real estate and mortgage activity during 2018,​ most also see steady gains,​ with continued economic growth and wellbalanced supply/demand ratio in​ the​ housing market.
Some of​ the​ factors driving the​ real estate market
+ Continued low interest rates Although rates climbed slightly in​ 2018,​ they are still at​ historic lows. Homes that were purchased over the​ last few years with interestonly and adjustablerate mortgages will enter the​ refinancing market. Homeowners will refinance to​ take advantage of​ increased equity values,​ and to​ convert to​ fixedrate mortgages as​ rates start to​ climb.
+ Internet Effect the​ internet gives buyers the​ opportunity to​ search MLS listings without going through an agent or​ broker. Not only have consumers become better informed and better educated about opportunities,​ but the​ entire homebuying process now takes less time than just four or​ five years ago. This trend will continue to​ accelerate.
+ Healthy economy leads to​ more relocation a​ vibrant economy and strong residential real estate activity drives commercial activity as​ well. And that usually leads to​ corporate relocations as​ people follow business and employment opportunities. That means increased real estate activity.
+ Generation X effect as​ baby boomers begin retiring and moving out of​ the​ real estate buy and sell cycle,​ Generation Xers have taken their place with a​ vengeance. the​ incomes of​ Gen Xers are generally higher than the​ previous generation,​ and financing is​ easier to​ get,​ so they have been able to​ buy more expensive homes sooner than boomers did. Gen Xers now make up 47% of​ the​ total homeownership segment in​ the​ U. S. ,​ and have an especially large impact on​ downtown and suburban communities.
**Many UK mortgages not covered by life insurance
A recent report by Sainsburys Bank estimates that as​ many as​ 4. 2 million people in​ the​ UK have mortgages that are not covered by life insurance. That means that as​ much as​ GBP217 billion worth of​ mortgages are open to​ be passed on​ to​ loved ones. This number has grown significantly over the​ last few years as​ the​ number of​ new mortgage approvals has grown.
Of course inheriting the​ debt associated with a​ property would be accompanied by ownership of​ the​ property itself. And with current prices on​ the​ rise,​ most people,​ even if​ forced to​ sell a​ property because they could not pay the​ mortgage,​ would not be as​ badly off as​ the​ report might suggest.
**UK borrowers opt for 2 year fixed mortgages
According to​ a​ recent survey of​ mortgage purchases in​ the​ UK,​ there was a​ significant shift in​ January towards 2 year fixed mortgages. in​ January 39 percent of​ borrowers chose this option compared to​ 27 per cent in​ December.
Interestingly enough,​ only 9 percent of​ buyers opted for a​ longer term fixed mortgage in​ January,​ compared to​ 16 percent in​ December. This was in​ spite of​ longer term mortgages up to​ 10 years fixed rate at​ less than 5 percent.
The popularity of​ a​ 2 year fixed mortgages suggests that buyers assume rates have bottomed out,​ at​ least in​ the​ medium term,​ but are not convinced they may not go down further two or​ three years from now.
Mortgage Report Mortgage Rates Stable In 2006 Mortgage Report Mortgage Rates Stable In 2006 Reviewed by Henda Yesti on July 03, 2018 Rating: 5

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