The Signs of An Improving Housing Market
Paul Dales, top economist for Capital Economics Ltd. commented recently about the improving housing market, saying, “The bottom is behind us. I don’t think we will return to anything like the exceptional booming market we had five years ago (but) we will have a very steady, slow recovery, but a recovery nonetheless.”
There are several indicators which point to the healing of the housing market, one of which is the loosening credit standards. Another indicator is the rise in availability of credit. There are good examples of this, one being a new initiative from the White House announced this past Tuesday, in which homeowners holding FHA loans and looking to refinance into another FHA loan via the FHA Streamline Refinance program will pay all of .01% in upfront mortgage insurance premium (UFMIP). This is a staggering 99% discount off the current UFMIP. These types of initiatives bring about needed relief as well as more cash into the market, which in turn spurs assistance to a sputtering economy.