The Greater Fort Wayne Business Weekly reported yesterday, homebuilder confidence rose to the highest in decade, signaling momentum in residential real estate will support growth in the second half of 2015.
“The National Association of Home Builders/Wells Fargo builder sentiment gauge rose to 62, the highest level since October 2005, from 61 the prior month, figures from the Washington-based group showed Wednesday. Readings greater than 50 mean more respondents report good market conditions.”
The Province reports, “A measure of current sales conditions and builders’ view of traffic by prospective buyers rose this month. But builders’ outlook for sales over the next six months declined slightly.
Sales of new homes jumped 21.2 per cent through the first half of 2015, backed by relatively low mortgage rates and solid job growth over the past two years.
It sounds good for housing doesn’t it? Then why are mortgage apps sitting near lowest levels since 2007.Is it possible that cash sales are distorting the numbers or is the homebuilder confidence just a part of the job; to be optimistic about your industry that puts food on the table? The chart above is especially troubling when we are experiencing some of the lowest mortgage rates of the decade and FHA and Freddie and Fannie are reducing their standards. Zero to 3% down payments are available and mortgage insurance rates have been reduced. In addition, banks are now encouraged to make loans to people with sub-650 FICO credit scores. One more thing, Boomerang buyers have waited the required time since their foreclosures and short sales to come back into the market.
It seems all the Federal Reserve has accomplished with seven years of zero interest rates was to force the middle class out of owning a house and into renting. The policy has resulted in money chasing existing housing and trapping millions who could have saved enough to buy a house to rent instead and rents are claiming an unhealthy percentage of their monthly income.
Studies have shown that longer than five years, owning a house is much less expensive than renting. If you have saved enough to make a 20% down payment, have little debt, money set aside for emergencies, and have found the house of your dreams, go for it.
JT Integrity Properties is here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 260-202-2222 to let us know what YOU need help with!