Although Thanksgiving is over, and the official Holiday Season has now been well begun, we of Palm State Mortgage Company are still exhibiting thankfulness. We are radiating cautious optimism for the Housing Industry Recovery as we go into the New Year. This is due to several reports.
Reason Number 1. The National Association of Home Builders has said that the NAHB/Wells Fargo Housing Market Index (HMI) rose another five points to a 6-year high of 46% in November. By the Way, you should know that “the HMI measures builder confidence for the single-family market.” So you see, this calls for a little optimism, because it is a sign that the buyers are showing some confidence in the housing industry once again.
Reason Number 2. According to the Census Bureau, re-construction has reflected its best numbers since 2008, going up 3.6 per cent. In simple words, this is our best level since July 2008.
Reason Number 3. Some numbers indicate health if they go “backwards.” Our total housing inventory at the end of October decreased 1.4% from the previous month. That means we still have 2.14 million existing homes for sale, ” but this October supply of homes available was at the lowest since the February of 2006.
Reason Number 4. The numbers of mortgage delinquencies, which have wounded the mortgage industry for years, show improvement. “The Mortgage Bankers Association reported the seasonally adjusted delinquency rate fell 18 base points during the third quarter of 2012 to 7.4%.” Let’s put a human face on that number. It is numerical proof that banks and mortgage companies are helping more people to find financial options to retain their home ownership, in spite of shaky economy, rampant unemployment and uncertain fiscal policy. Amazingly, “Foreclosure starts declined to 0.9% of all first-lien mortgages during the third quarter of 2012: the lowest reading since the end of 2007.” For more fascinating financial facts and figures, just click here.
Reason Number 5. So what might be holding the housing industry and the economy back? Perhaps progress is being impeded by some tight lending practices. Some financial advisors have been encouraging tight lenders to relax a little bit. Federal Reserve Chairman Ben Bernanke recently stated, “It seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery.”
At Palm State Mortgage, we do not believe it is fair to punish mortgage-worthy applicants for the past misconduct of borrowers and lenders. With this in mind, you can rest assured that Palm State Mortgage will find you the best possible rates for your home loan.
Happy Shopping time for the Holidays, and if you are shopping for a perfect home loan wrapped up in red ribbons, but not a lot of red tape, we will be glad to help!
