Consumers are spending like never before. A big reason is because HELOC’s are up and they are up big time. Are we using our homes as ATM’s again?
Today’s real estate news and mortgage news is about the serge in HELOC’s. Moody’s is reporting they have grown by 11% in 2012 and 16% so far in 2013. In fact they are saying that they could hit a 5 year high in 2014 of over 300 Billion! So it looks like we’re making a run on our homes as ATM’s again. Seems the more things change the more they stay the same, yes?
In more mortgage news, the Freddie Mac economist, Frank Nothaft, is saying that we can expect interest rates to be in the 5′s in 2014. So as the saying goes, it’s best to get while the getting is good. Couple this with tighter underwriting and QM and as real estate agents and mortgage loan originators we’d better step up our game and start getting back to the basics. And if you’re a consumer, now would be a good time to get something started.
Not to escape any hard times, according to Rick Sharga the VP of Auction.com, lenders are going to have a tough Q1 in 2014. Why? FHA’s MI makes it tougher to get HUD financing, Affordability is fading and refinances are way off. But this is nothing new to you, our NREP viewers, as we’ve all been talking about this for over a year now.
The good news is, there’s still time to take advantage of rates and programs now if you’re a consumer and as real estate and mortgage professionals we know how to create our own market to succeed.
Well thanks for finding your real estate news and mortgage news here at the National Real Estate Post with Frank and Brian. We truly appreciate your viewership, sharing and your comments below.
Have a great day.
Frank and Brian