Builders are preparing for the effects of a range of new federal rules on mortgage finance, with the biggest impact likely to be on new homes.
The Federal Housing Administration’s new requirements on mortgage products mean that a large number of new homes are likely to need loans to pay the down payments on, and keep the financing costs down, according to industry experts.
Some of the biggest buyers of new home loans are people who are already in default, according the National Association of Realtors.
There’s been a slight uptick in homebuilding activity in the first half of the year, driven by an increase in home sales, according a report from the National Realty Investment Council.
In addition, a number of lenders are beginning to open up loans to homebuyers who are at risk of defaulting on their mortgages.
One of the reasons that people are moving back into the housing market is that people who previously were out of work are now in the market, said Peter DeGraffenreid, chief executive of the REALTORS Institute, a nonprofit group that studies the economy and financial markets.
“There’s this sense that people have come back into their home and are reaping the benefits of being able to pay off their mortgage, which is a great thing,” Mr. DeGraffenreid said.
Even though many people in the housing sector are still in the early stages of recovery, they may be reluctant to put their money to the mortgage in the hope of making more money later, said Josh Bader, president of Mortgage Solutions, a company that helps homeowners refinance their mortgages with companies like Fannie Mae and Freddie Mac.
Many people are still spending more on housing, he said, and many are making fewer payments than they were last year.
For those who are ready to buy a home, there’s no doubt that prices will rise.
In December, the median price of a home in the San Francisco Bay Area rose 6.4% over the year.
The median price for a one-bedroom apartment in Seattle rose 7.4%.
But that doesn’t mean home prices will necessarily skyrocket.
That’s because homebuyer sentiment has generally been mixed in recent months, and prices have generally been driven by a strong dollar.
In the first quarter, the average price of homes in the U.S. climbed 3.9%, according to the NARIC, which tracks home prices.
The biggest winners will likely be those who have already paid off their mortgages, said Matt D’Agostino, chief economist at the Realtor Institute.
People who are looking to sell and are willing to pay a bit more will likely want to look at an equity investment, Mr. D’Apostino said.
Homebuyers in the process of making payments will be more likely to seek out mortgage refinancing.
Most homebuyings in 2017 were financed by the mortgage companies, according in a recent report by Bankrate.com, which rates mortgage loans across the country.
A few recent examples: The first-time buyer, whose first-year income was less than $40,000, got a $3,500 loan from a company called Home Capital, which provides low-interest home loans to first-timers.
The borrower paid off the first $6,000 of the loan within 10 years and used the remaining $5,000 to pay down the loan.
Home Capital’s first-ever homebuy-to-cash-out loan, for a $1.3 million home, was made to a buyer with $20,000 in down payments.
When a person’s monthly income reaches a certain amount, they can get a 30-day grace period.
Fannie Mae is making refinancing easier for borrowers who have more than one mortgage, but some people are struggling to find financing that meets their needs.
Banks have been reluctant to allow borrowers to refinance, saying it can lead to foreclosure.
But some banks are easing that requirement.
And some borrowers are finding that refinancing can be a cheaper way to pay for a home.
A man walks through the window of his home at his home in Atlanta, Georgia, U.N. Photo by Jim Watson/ReutersIn a survey by RealtyTrac, which collects data from real estate agents, a quarter of buyers said refinancing would be a better option.
That includes a third of buyers who were willing to use a savings account to cover the cost of a down payment.