The economic crisis all over the world has ceased the growth in different sectors. So has it affected various sections of U.S. economy.
The citizens of the nation have experienced retarded growth in job sectors, non-availability of jobs for those who are acquiring higher degrees and there are stories where people are working with a cut in their salaries.
The stock markets have nothing exciting to share, the funds are not bringing any good news to the investors and the worst hit is the Real estate sector.
The Mortgage rates in USA were lowest in 1971 which was 3.56%. Once again history seems to be repeating itself and the mortgage rates have become 3.53% now.
According to a finance company in Virginia the rates have declined to 2.83% which is a new low in the last 15 years, earlier the lowest decline was 2.86%.
A property Economist for Capital Economics Ltd, Paul Daggle says, There is underlying improvement under way in housing demand in the U.S.
He also said, We always knew it would proceed with fits and starts, and the report today is consistent with that.
The Mortgage rules have become difficult than before leaving the buyers with very little option of buying a house.
FHA Commissioner David Stevens says, The moves are designed to get the reserves back up. He was speaking in context with foreclosures and debt accumulation in the market.
Some of the new Mortgage rules are mentioned below-
New borrowers must have a credit score of 580 to enjoy the benefit of making a down payment of 3.5%. Buyers with a lower score will be entitled to make a down payment of at least 10%.
Seller concessions will be reduced from 6% to 3% of the price at which the house is sold.
Now the buyers will have to pay an insurance premium of 2.25% of the loan amount which was 1.75% before.
Joel Naroff of Naroff Economic Advisors says, It will show the growth in demand. He also says, Any time you put up roadblocks, fewer people will qualify.
He ensures that the effect of these changes will be seen in the long term.
The unemployemtn rate has been stuck around 8%. With these changes buyers are not likely to gain confidence in purchasing homes.
Experts report that there is a rebound in the property. They have also reported a decline in the sales of houses which was5.4% in June. This figure is quite a low one in compared to the volume in which housing market speaks in the nation.
Dean Baker of Centre for Economic and Policy Research says, FHA requirements will have a significant impact on borrowers, especially first time home buyers. He adds, Those who are denied FHA insured loans usually are unable to qualify elsewhere.
Baker feels that such steps were important to lend loans with 3.5% down during a time when the property values are decreasing.
Chief Economist at the National Association of Realtors, Lawrence Yun says, Very lax lending and FHA insolvency could hurt the housing market worse in the future.
The citizens of the nation have experienced retarded growth in job sectors, non-availability of jobs for those who are acquiring higher degrees and there are stories where people are working with a cut in their salaries.
The stock markets have nothing exciting to share, the funds are not bringing any good news to the investors and the worst hit is the Real estate sector.
The Mortgage rates in USA were lowest in 1971 which was 3.56%. Once again history seems to be repeating itself and the mortgage rates have become 3.53% now.
According to a finance company in Virginia the rates have declined to 2.83% which is a new low in the last 15 years, earlier the lowest decline was 2.86%.
A property Economist for Capital Economics Ltd, Paul Daggle says, There is underlying improvement under way in housing demand in the U.S.
He also said, We always knew it would proceed with fits and starts, and the report today is consistent with that.
The Mortgage rules have become difficult than before leaving the buyers with very little option of buying a house.
FHA Commissioner David Stevens says, The moves are designed to get the reserves back up. He was speaking in context with foreclosures and debt accumulation in the market.
Some of the new Mortgage rules are mentioned below-
New borrowers must have a credit score of 580 to enjoy the benefit of making a down payment of 3.5%. Buyers with a lower score will be entitled to make a down payment of at least 10%.
Seller concessions will be reduced from 6% to 3% of the price at which the house is sold.
Now the buyers will have to pay an insurance premium of 2.25% of the loan amount which was 1.75% before.
Joel Naroff of Naroff Economic Advisors says, It will show the growth in demand. He also says, Any time you put up roadblocks, fewer people will qualify.
He ensures that the effect of these changes will be seen in the long term.
The unemployemtn rate has been stuck around 8%. With these changes buyers are not likely to gain confidence in purchasing homes.
Experts report that there is a rebound in the property. They have also reported a decline in the sales of houses which was5.4% in June. This figure is quite a low one in compared to the volume in which housing market speaks in the nation.
Dean Baker of Centre for Economic and Policy Research says, FHA requirements will have a significant impact on borrowers, especially first time home buyers. He adds, Those who are denied FHA insured loans usually are unable to qualify elsewhere.
Baker feels that such steps were important to lend loans with 3.5% down during a time when the property values are decreasing.
Chief Economist at the National Association of Realtors, Lawrence Yun says, Very lax lending and FHA insolvency could hurt the housing market worse in the future.
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