Housing Market Predictions

2019/06/14

If you’d like to buy a home with mortgage or sell the home you own, you need to take a look at the housing market predictions for 2011. It’ll help you to take the right decision as far as buying or selling your home is concerned. In this write-up, you’ll find some of the predictions for the housing market in the year 2011.

Housing  Market  Predictions  For 2011:

Mortgage rates not being high and home prices having fallen, buying a home is currently more affordable. But people are skeptical as to whether they can manage a mortgage or deal with a situation where they may fail to repay the loan.

That’s because they may have to sell off their homes to pay down their mortgages and if home prices go down further, they won’t be able to recover the loan balance. So, being skeptical about housing market conditions, most individuals may think of renting a home rather than buying.

Those who still want to buy a home in 2011 need to be cautious about their credit scores and loan payment history. That’s because they’ll need to satisfy tight lending criteria for a mortgage, be it an FHA-insured home loan or one that’s offered by private lenders.

The lenders seem to have tightened criteria, especially since the subprime mortgage meltdown. Moreover, investors like Fannie Mae and Freddie Mac have decided to force lenders into repurchasing sold-off loans under certain conditions.

This results in lenders losing their money. So, lenders have made sure that qualifying for a mortgage will now need more documentation, multiple credit checks and income verifications.

As far refinancing is concerned, most borrowers won’t go for it this year. That’s because they’ve already refinanced in 2010 or 2009, thus locking in low rates. These borrowers are likely to have enough equity in their homes. It is expected that they’ll have good credit as well, since they’ve been making payments on their low-rate refinance mortgages regularly.  So, they will hardly go for a refinance now.

As far as home sale is concerned, it won’t see much growth. That’s because there aren’t too many buyers. As mentioned earlier, people are quite skeptical and not yet confident enough ever since they’ve seen the housing market crash due to subprime mortgage meltdown. Moreover, unemployment rate has gone up, thus resulting in low home prices and less number of home-buyers.

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