5 Spring Housing and Mortgage Trends for 2013


1. Fewer options, higher prices, and bidding wars – expect competition and bidding wars when buying a home this spring, demand is growing faster than supply and creating a shortage.  Currently there is a 4.7 month supply nationwide, and a balanced market requires a 6 month supply.

2. Loan modifications made easy (for some) – Starting in July FHFA will require mortgage services to offer streamlined modifications for loans through Fannie or Freddie for homeowners that owe at least 80% and who are 90 days – 2 years behind.

3. FHA loans loose appeal again – FHA loans issued after June 2 will require PMI to be paid for the life of the loan, versus the current 78% equity.

4. Equity loans and cash-out refinances are back (sort of) – 1.7 million people regained equity in their homes last year, and another 1.8 million just need home values to increase another 5%.  As home prices rise homeowners may consider turning to their homes as a potential source for a loan.  Lenders remain somewhat reluctant because of the contribution that this played in the mortgage meltdown.

5. Mortgage rates rise at a snail’s pace – Mortgage rates are expected to creep up, but remain low, and should stay that way through the year.

Click here to read the full article and learn more about each trend >>