Categorized | Finance and Mortgage

Home Sales Continue to Struggle Due to Financial Worries

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In the most recent report released by Freddie Mac, the data shows that the housing market continues to remain in a major slump, While consumer confidence in the retail sector continues to improve, the real estate market has not experience the same positive growth. In fact, many potential homebuyers have opted to hold off on buying a home due to their concerns about their personal finances and the job market.

It is those concerns that have played a major role in the fact that the real estate market continues to struggle despite incredibly low mortgage loan rates, and incredibly low prices.

The report also highlighted the importance of allowing current homeowners to refinance. The banks have, for the most part, been incredibly stringent with respect to the approval of applications for both new homebuyers, as well as those current homeowners looking to refinance. However, Freddie Mac’s report indicates that allowing borrowers to refinance to a lower interest rate with lower monthly payments is critical for driving residential real estate growth in the future. While refinancing may cause a slight reduction in current profits and monthly revenue, it will lead to stronger growth in the long-term.

The Freddie Mac report did not really present any new data in the eyes of many analysts. Nearly everything in the report had already been recommended by some of the best residential real estate analysts. However, the report did solidify the opinions of the analysts, and as a result, those opinions and recommendations may be taken more seriously.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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