Tuesday, June 13, 2017

New Wave of Home-Buying May Be on the Horizon

 New Wave of Home-Buying May Be on the Horizon

The year 2017 marks the seventh year since a huge influx of bankruptcy filings in 2010 at the peak of the housing crisis.  Millions of Americans will begin to see these bankruptcies start to fall of their credit reports.  Once off, as credit scores begin to improve, many of these consumers are expected to enter or re-enter the housing market.
As reported by The Wall Street Journal, credit scores hit a record high this spring while the percentage of Americans in the riskiest borrower category has hit an all-time low.  Armed with good credit, these potential buyers will be heading out creating an aggressive housing market.  According to housingwire.com there are other factors that will also play into this competitive market.
  • ·        President Trump’s plans to dismantle the Dodd Frank Wall Street Reform Act: if this happens lenders will have more freedom to originate loans outside of traditional qualified mortgages, extending credit to a more diverse pool of likely home buyers.
  • ·       The rise in United States citizenship: once immigrants become citizens, home ownership rates rise to approximately 69%.
  • ·        The first time home buyers entering the market: as many Millennial buyers are seeking out homes to purchase.

All of these factors will make a tight housing market even more competitive as housing inventory levels drop.  

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