Friday, May 27, 2016


Here we go again… 
First-time buyers and low- to moderate-income buyers have largely been sidelined by today’s housing recovery.
The common cry is too-tight credit. Lenders have kept the credit box restrictive because they are gun-shy from the billions of dollars in buy backs and judicial settlements stemming from the mortgage crisis that they still face today. Now, the nation’s largest lender, Wells Fargo, says it is opening that box with a new low down payment loan — a loan it claims is low-risk to the bank.
“We are fully underwriting the borrowers, we are partnering with Fannie Mae to originate and sell these loans, we are insuring the borrowers have an ability to repay and that they’re qualified for home ownership, but we’re simplifying things for the homebuyer,” said Brad Blackwell, executive vice president and portfolio business manager at Wells Fargo.
Record numbers of people buying homes at all time high prices as macros head down. Be interesting to see how these folks feel in 2-3 years.
Looking at housing, which historically rises 1.5% per YEAR:
2008 saw record bubble housing prices. Fraud triggers a crash in housing prices. Less than 10 years later, prices are higher than they were in 2008 but the economy never recovered.
So………..SOMEONE is saying, “no, no, no, housing prices should have been that high in 2008 regardless of the fraud. 9% rises in home prices YOY is perfectly legit. Now, did you want fixed or adjustable? Adjustable would be great for you.”

Americans Bought The Most New Homes In 8 Years Just As The Median Price Hit An All Time High

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