With mortgage rates likely to approach 5 percent next year, normalized underwriting standards are crucial.JULY 2013 | BY LAWRENCE YUN
We’re keeping a close eye on mortgage rates. After years of historic lows, rates are on the way up and will likely close in on 5 percent by mid-2014 and go even higher in 2015, from an average 3.5 percent in early 2013. That is unwelcome news for buyers, and we can expect some households to be pushed out of the market as a result. For example, there are about 17.8 million renter households with sufficient annual income—at least $36,000—to buy a $177,000 home at a 3.5 percent mortgage rate, compared to 14.9 million at a
5 percent mortgage rate. Mortgage Rate Relief Coming?
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