THE EXPERTS AGREE, NO SIGNS OF HOUSING MARKET SLOWING DOWN

Despite all odds against the housing recovery, the market is steadily improving and housing experts do not expect the sector to lose its momentum any time soon.
Regardless of an inadequately housing supply, rising home prices reacting to strong demand and difficult lending environment, market expectations remain bullish on housing.
Nonetheless, housing is in its early stages of recovery and panelists at the Bipartisan Policy Center’s conference believe it’s not time for the Federal Reserve to take their foot off the bond-buying gas pedal just yet.
"There is a cyclical and structural nature to the problem," explained Paul Weech of Housing Partnership Network.
He added, "We haven’t solved for the underlying structural problem and if we revert back to the norm, we still have millions of homes trying to get back in the full market recovery."
One of the major factors still impacting the housing market is underwriting standards.
Fannie Mae senior vice president and chief economist Doug Duncan pointed out that there is a high correlation between the business cycle and the credit cycle, which will ultimately lead to an established fixed floor of the credit box.
"If in the regulatory process we can establish a fixed floor then we’ll change fundamentally the level of housing," Duncan explained.
Looking to the future state of housing, experts agreed that immigration will play a significant role in the housing recovery.
Data taken from 2012 and estimated through 2050 shows that the economy will have 15 million less workers if the immigration rate continues, meaning less people in the housing market and less people paying into their entitlements, Duncan noted.
Another group of Americans that will affect the future of housing is the baby boomer generation, which is the fastest growing age group.
Many have a desire to remain in a home, but want to be mobile. As a result, homebuilders are trying to find new ways to accommodate these needs as well as attract first-time homebuyers to market.
Conine Residential Group president Kent Conine explained that homebuilders are introducing new innovations and productions into the marketplace.
For instance, Conine is in the process of developing a system in which seniors sell their current homes and downgrade to plain vanilla property, which will allow them to travel, while still maintaining a home.
On the reverse side, many homebuilders are going back into the inner cities to tear renovate properties in the hopes of enticing first-time homebuyers into the market.
"While it’s far from where it needs to be, housing is improving," stated Realogy Holdings Corp. chairman and chief executive officer Richard Smith.
He concluded, "If given a little nudge from regulators and Congress to put in some definitive rules, housing has only one way to go, up."



*courtesy of Housing Wire

NEW FORECLOSURE PROGRAM FOR OREGON

A new state program to prevent home foreclosures launches today in 33 Oregon counties.

The Home Rescue Program will provide a year’s worth of mortgage payments, up to a total of $20,000, and up to $10,000 in back payments to bring mortgages current.

The Eugene Register Guard reports that the program aims to provide help to about 25-hundred homeowners.

The Oregon Housing and Community Services agency started accepting applications online today at noon.

To qualify, applicants must be able to show that their income is at least 10 percent lower than it was in 2011 or 2012, and meet other eligibility requirements.

But you do not have to be behind on your mortgage payments to qualify.

Only 100 homeowners will be accepted in the first round, because it will take time to process the applications.

Multnomah, Clackamas and Washington Counties will be added to the program later.

 

 

*courtesy of OPB

5 THINGS TO KNOW ABOUT RISING INTEREST RATES

1. No more record rates, but still cheap loans
If the economy continues to improve as anticipated, rates will keep inching up. Freddie Mac expects the 30-year to reach 4.7% by the end of 2014. IHS Global Insight forecasts that rates won't hit 6% until 2017.
2. The refi window is starting to close
The rate bump is already cooling off refis, but most homeowners with the equity and stellar credit to refinance have already done so.
If you didn't have enough equity to qualify, check again -- rising prices pushed 850,000 homes into the black in the first quarter, according to CoreLogic. Plus, the recovery may lead lenders to loosen up.
The average credit score for an approved mortgage has been 761, says the National Association of Realtors, up from the normal 720.
3. Higher rates won't scuttle the housing recovery
At worst, this turnaround will only dampen the pace of growth, says IHS U.S. economist Patrick Newport. A healthier economy is what's boosting prices. Rates would have to rise sharply to make a mark. "Going up three percentage points would be a major wet blanket," says Bob Walters, chief economist of Quicken Loans.
Related: Mortgage rate rise will not push up home prices
With prices rising, sellers can be patient. For buyers, mortgages are still historically cheap.
4. Once you're ready to buy, lock in
To avoid any short-term spikes, Washington, D.C., mortgage banker Frank Donnelly recommends locking in as soon as you can (typically when you sign a contract).
Most lenders won't charge for a 45-or 60-day rate lock. Pay for a 90- or 120-day lock only if deals close slowly where you live (ask your lender); the typical cost is a quarter of a point per 30 days. With a float-down option, you'll pay less when rates fall at least a quarter point. Skip that add-on unless it's free.
5. Fixed loans usually beat adjustables
You may be eyeing adjustables, which are up less than fixed loans. An ARM is the better call only if you plan to own your home for a short time.
Related: What will your mortgage payment be?
"When you need five or six years, you might save with an adjustable," says Keith Gumbinger of the research firm HSH.com.
A monthly payment on a $250,000 mortgage is $1,194 with a 30-year loan at 4%, or $999 on a five-year ARM at 2.6%. But it's crucial to get a loan that matches your time frame.


* courtesy of CNN Money