It’s been a tough year for the housing market. But it’s not all been bad. With FHA loan rules likely to tighten, there are concerns amongst some that the the ability to get new loans going will continue to be difficult. However, there are some silver linings. Mortgage News Daily offers 10 reasons that the housing market should cheer up. Here are my five favorite reasons from the list:
1. Stock market rally: Overall confidence should help matters immensely, and the stock market should be a big part of that.
2. Extended tax credit: The first time homebuyer tax credit was extended into next year, and expanded to include those who are “trading up”.
3. TARP repayment: Bank of America repaid TARP, and the latest news is that most of the TARP funds are going to be repaid.
4. CRE is resilient: Commercial loans still have a lower delinquency rate than residential loans, and that is helping matters for the overall real estate market.
5. Not all the home builders are bankrupt: Mortgage News Daily points out that even though many home builders are struggling, it’s a veritable miracle that they all aren’t bankrupt.
[…] rose by 8.5% according to the Mortgage Bankers Association, providing something for the housing market to be thankful for. This represents a return to the trend in mortgage applications, probably with a little help from […]