Mortgage demand falls to the lowest level in 22 years

[Papageorgio]

We sold our home last year and moved into an apartment, by this time next year we expect the market to soften by about $50K.

 

[DudleySmith]

Banks have more cash than they can lend & you could not get a loan even with 20% down if you don't have an income.

Stats in my ;boom town' real estate sales here in the Dallas/Ft.Worth area show that one out of every two homes sold are bought by a company or corporation, not an individual. Your bizarre view of the real economy is just silly.

 

[DudleySmith]

We sold our home last year and moved into an apartment, by this time next year we expect the market to soften by about $50K.

If I wasn't too lazy to move all this crap that is what I would do, sell and buy back later when the prices tank, which in this fake bubble shouldn't be but a couple of years or so.

 

[KissMy]

Stats in my ;boom town' real estate sales here in the Dallas/Ft.Worth area show that one out of every two homes sold are bought by a company or corporation, not an individual. Your bizarre view of the real economy is just silly.

Those are companies to limit liability of landlords & trust to shield from cap gain taxes when transferring assets. They are stable owners, not subprime borrowers. Also Dallas is an outlier that never had the subprime boom & bust from 2003 to 2008 like 90% of the US had. Maybe their banks must see a lot of oil boom & bust, so they kept their head straight.

 

[DudleySmith]

Is a home foreclosure tsunami ahead for Dallas-Fort Worth and the nation?

Millions of American homeowners have been sheltered from foreclosures since the start of the COVID-19 pandemic. But with mortgage forbearance programs and...

www.dallasnews.com

Is a home foreclosure tsunami ahead for Dallas-Fort Worth and the nation?​

Top housing economists don’t foresee a big wave of D-FW and U.S. home foreclosures as federal mortgage forbearance programs end.​

https://www.bizjournals.com/dallas/news/2021/07/29/fha-delinquencies-dallas-fort-worth-houston.html

Dallas-Fort Worth, Houston, San Antonio among 10 metros most threatened by FHA delinquencies​

Pandemic mortgage relief headed off delinquencies, but what happens now?

As more Texas mortgages exit forbearance, ZIP codes with larger vulnerability will be at particular risk for financial stress.

www.dallasfed.org

Homeowners in Texas and the U.S. can thank the Coronavirus Aid, Relief and Economic Security (CARES) Act’s economic relief measures, in particular mortgage forbearance, for this trend. Aside from billions of dollars set aside for direct stimulus checks and expanded unemployment benefits, the CARES Act also provided for temporary cessation of payments on federally backed mortgages.


The CARES Act offered this forbearance option for homeowners experiencing pandemic-related financial hardship, regardless of whether a borrower was current on mortgage payments before the pandemic. The act initially granted forbearance to borrowers for 180 days, but for many, extensions led to a maximum period of 18 months of relief that is now at, or nearing, an end.[1] An estimated 70 percent of the mortgage market was covered by this provision, which did not require borrowers to provide proof of financial hardship.[2]


The CARES Act explicitly required servicers to report forborne borrowers as “current” to credit bureaus if the borrowers had been current on payments prior to the pandemic.[3] So while mortgage furnishers recorded missed payments, they continued to report the borrowers’ prepandemic status to Equifax. Therefore, reports of delinquencies from credit bureaus may understate financial distress during this period.


In other words the FEds have already been bailing out the housing industry, they just essentially been paying the mortgages so FAnny Mae and FHA have been able to pretend they're still solvent. They're propping up prices by keeping all the defaults off the record.

 

[initforme]

It matters not how many people are applying for mortgages. Less people in debt. Less people having kids. Win win for them and the nation.

 

[KissMy]

There has been much less money lending on houses & way more homeowner equity since 2008. So there is no mortgage bubble to default on. Rising interest rates can stop them from climbing, but no huge crash is coming.