November 13th, 2012
The positive gains made in the housing market as of late, including record-low mortgage rates, shrinking foreclosure inventories and strengthening home prices, are expected to continue through 2014, according to new projections.
The data was revealed at the recent 2012 Realtors’ Conference and Expo, giving hope to the mortgage servicing industry, buyers and sellers alike. However, professionals say the positive estimations may only reach fruition if there are no further limitations on the availability of credit. Currently, lenders remain reticent to loosen credit restrictions which have forced many would-be buyers toward the rental market.
“Real estate will be a hedge against inflation, with values rising 15 percent cumulatively over the next three years, also meaning there will be fewer upside-down homeowners,” said National Association of Realtors chief economist Lawrence Yun. “Today is a perfect opportunity for moderate-income renters to become successful homeowners, but stringent mortgage credit conditions are holding them back.”
While a mortgage service company can help potential buyers navigate the purchasing process, consumers are still responsible for improving their credit scores in order to take advantage of competitive rates. Despite improving home conditions, consumers’ credit scores remain a central factor in whether they qualify for a home loan.