Is an overly pessimistic view hurting the economy and real estate? Also discussing some misconceptions about mortgages…
From Hamilton Nolan at Gawker:
It’s only a matter of time before the Fed stops pumping money into our economy and we deflate along with everyone else and then the demographic retirement bomb hits and we have fewer younger workers supporting the baby boomer retirees and health care costs explode and everyone’s cranky and hope seems like a faraway dream and all the Europeans are laughing at us. So enjoy this brief moment of self-satisfaction while it lasts.
Not a big fan of the Fed or the idiots in Washington but maybe this is too pessimistic. However, buyers and sellers both have to keep an eye on the economy since it affects the real estate market. And consumer confidence. And mortgage rates. I could go on and on…
Read more Here
Can’t Get No Satisfaction
Americans’ satisfaction with the way things are going in the U.S. is at 24% in May, down from 30% in April and near the 25% average for the first five months of 2013. Democrats’ satisfaction is down the most in May.
Gallup’s U.S. Economic Confidence Index fell slightly to -11 after tying the five-year high of -8 the prior week and improving for three straight weeks. Still, the current reading is one of the highest weekly scores of the year.
Well this hurts. We need people to be confident so that the recovery in real estate will not slow down. Most people are not going to buy a home if they are not feeling confident about the future. Which is a damn shame.
Are you are missing out on the opportunity available to home buyers today because you are not confident about the future?
Awesome Advice Despite the Source
From an article attributed to Zillow on AOL:
Mortgages are tricky and often hard to understand, and prospective home buyers don’t spend a lot of time educating themselves about mortgages and the mortgage process.
Despite my dislike of Zillow because of the problems they cause with their inaccurate or outright wrong information, this article is actually good. Please read 10 Mortgage Misconceptions
But Is This a Bad Thing?
Since I just shared an article about misconceptions people have about mortgage, check out this excerpt from an article over on Realty Pin:
For the past few years, many Americans have been turning to government-backed mortgages to purchase a home, but some new changes may reduce the number of borrowers who qualify for these types of loans.
How did we get here?
When the housing market collapsed in 2008, many private lenders were afraid to issue mortgages, so home loans backed by the Federal Housing Administration (FHA) gained in popularity. Even now, as the market is showing signs of recovery, lenders will only approve loan applications for borrowers with stellar credit and a 20% down payment. Prospective homebuyers who don’t meet those criteria often turn to FHA-backed loans, which essentially protect lenders if the borrower defaults on the loan.
I think they are being a little over dramatic about how hard it is to get a mortgage. While mortgage lending is tighter than it was before the real estate market meltdown, it should not stop you from at least talking to a lender. Find out what is possible for you. You may be pleasantly surprised.