Oct. 13, 2007 - Brighter mortgage predictions from NAR

Improvement in Mortgage Market Bodes Well for Housing in 2008

Earlier this week the National Association of Realtors® (NAR) released a forecast of improving mortgage market conditions and in early 2008 pent up demand should be eased.

The press release went on to say, "Lawrence Yun, NAR senior economist, notes that widening credit availability will help turn around home sales. "Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages," he said.

Yun said it's important to place the current housing market in perspective, and that 2007 will be the fifth highest year on record for existing-home sales. "Although sales are off from an unsustainable peak in 2005, there is a historically high level of home sales taking place this year - a lot of people are, in fact, buying homes," he said. "One out of 16 American households is buying a home this year. The speculative excesses have been removed from the market and home sales are returning to fundamentally healthy levels, while prices remain near record highs, reflecting favorable mortgage rates and positive job gains."

He emphasized all real estate is local with naturally large variations within a given area. To read the complete NAR news release, click here

On other mortgage matters, effective October 31, 2007, under current guidelines, the Department of Urban Development (HUD) is ending the popular "down payment assistance" Ameridream program. It allows sellers (homebuilders) to contribute toward a buyer's 3% FHA loan down payment.

In response to HUD's actions, Ameridream has filed for a temporary restraining order against the HUD rule. For more information on Ameridream and it's legal motion, click here