Will Higher Rates Choke Off Housing Recovery? We Say “No”

Will increasing rates choke off the housing recovery? Probably not. This is important for leery new buyers to understand. It is true that low rates improve the housing picture b/c they foster more affordability. But, the other factor that drives housing is the overall employment picture, and it has been steadily improving. This is particularly […]Read More

Irrational Underwriters – Unforeseen Conditions – Loan Buybacks – Paranoia

We take great pride in our ability to spot issues up front. BUT, unfortunately, we operate in an era of underwriter-paranoia. The reason: Fear of Loan Buybacks. Major investors and Fannie and Freddie all can and do demand “Buybacks”; they can force the lender that originally funded the loan to buy back a loan if […]Read More

“Price Per Square Foot” Issues

The Price Per Square Foot Myth: We have a client with a 2,600 square foot house listed for $1.1 Million. It has been listed pretty much forever and is not selling. The owner insists it is worth “$425 Per Square Foot” because “all the other houses in the area are selling for that or more”. […]Read More

Rates Up; Median Home Price Up?

Rates jumped yesterday based on rumors that the Fed may allow yields to creep up somewhat in order to entice the private sector into buying mortgage backed securities. As you all know, the primary buyer for the last six months has been the Fed. Without the Fed’s massive purchases, interest rates would be substantially higher […]Read More