Are housing prices still on the way up or are we headed for a correction?
One more supporting piece of data that says the right time to make that first buy or move up buy is now.
However, I would feel a lot better if two of the predictors of this rosy future were someone other than the Government Sponsored Entities (GSE’s) who were the major culprits of the last house price debacle.
That one wreaked havoc on the country and the world from 2007 to 2012. And, by the way, we are still not fully recovered.
A recent New York Post story stated, “The Obama administration is doing its best to give the nation another mortgage meltdown.
As Paul Sperry recently noted in The Post, Team Obama has pushed mortgage lenders to offer home loans to folks with shaky credit, setting up conditions for another housing-market collapse.”
I am not that pessimistic, at least not yet. But I would feel a lot more secure if the mortgage lending rules were being decided locally by lenders who would hold and service their own loans instead of bureaucrats in Washington who dance to the politician’s tunes.
“A growing body of research shows that during presidential election years — particularly ones like this when there is such uncertainty about the nation’s future — industry becomes almost paralyzed. A look at the last several dozen election cycles shows that during the final year of a presidential term, big corporate investments are routinely postponed, and big deals are put on the back burner.
The research is even more persuasive on the final year of an eight-year presidential term, when a new candidate inevitably will become president.”
We are seeing this take form in the latest economic numbers. However, will this lead to a slowdown in the housing market? Not according to Fannie Mae, Freddie Mac or theNational Association of Realtors.
The Impact on Housing Throughout 2016
Let’s look at what has happened and what is projected to happen by these three major entities.
“In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing-sales since 2007.”
“Recent data darkened the growth outlook for the first quarter of 2016. However, despite the disappointing economic reports, we still forecast housing to maintain its momentum in 2016.”
“Consumers and businesses showed caution at the end of the first quarter…(but) Home sales are expected to pick up heading into the spring season amid the backdrop of declining mortgage rates, rising pending home sales and purchase mortgage applications, and continued easing of lending standards on residential mortgage loans.”
Even during this election year, the desire to achieve the American Dream is greater than the fear of uncertainty of the next presidency.