This program aims to lock in interest rates for buyers, so that while they are shopping for a home, their interest rates are either locked, or will go down if the market goes down.
This is very interesting for several reasons:
1) This is a throwback to the housing boom- these type of programs were very similar
2) This is an admission by a lender that higher interest rates are truly hurting their purchase business (as opposed to what the National Association of Home Builders Says)
3) The happy days of the previous year and a half are not so happy
The one piece of good news for the lenders is that there is still purchase business to be had. However, given that rates are going up, the buyers are qualifying for a lot less, which means their buying power lower.
Let me know your thoughts.
No comments:
Post a Comment