- The Federal Reserve buying Bonds (Quantitative easing) helps keep mortgage rates at record lows
- Government entities, Fannie Mae, Freddie Mac and Gennie Mae (FHA) are the funding source for nearly 90% of all mortgages
- Government refinance and short sale programs are helping reduce the foreclosure overhang
- The concern over the potential lender restrictions under the Dodd-Frank act has banks holding back on lending
- Government law suits against banks to buy back old loans have caused many to stop mortgage lending all together, restricting available credit
- Uncertainty about what will be the underwriting standards imposed on lenders going forward causes lenders to be more cautious
- Congressional inaction on extending the Rural Lending programs have reduced access to credit for many rural markets
I've certainly seen the slowdown locally, with an inventory that is so low that we can't find houses for would-be buyers. There are just too many people who are still underwater on their mortgages. One thing that I thnk needs to happen is for those people who are holding back because of imagined rather then real loss of value to get on with life. Many people, most in my own age group, are sitting there with homes that they own free and clear, yet they can't seem to let go of the value that they thought was there at the peak of the market. Those are imagined losses, not real losses. They exist only on paper and in the imagination of the owners.
This is one instance in which a saying that I really don't like applies - it is what it is - so get on with life. If you are sitting on a home that you'd rather sell and that you own, because you are waiting for the "value" to return to 2005-6 levels, you could be in for a long wait - one that you might not get to the end of in time to enjoy the retired life that you've waited so long to enjoy. The market is begging for houses right now. You'll get top dollar at the current market value and get it quicker than if you wait. So call me and let's see what your home is worth in today's market. The market analysis is free and it might allow you to see how you can get on with life by selling your home now.