Looser loan standards on jumbo loans will increase demand in communities like Irvine, and it may serve to push prices higher.
Despite the reflation rally that drove house prices higher, sales volumes over the last few years were well below historic norms as the market slowly transitioned from… – Looser jumbo loan standards spur Orange County housing
With the disappearance of the entry-level buyer, builders aren’t building small, entry-level homes, so the average size of new homes keeps rising.
The entry-level buyer utilizing only their savings plus a loan is the foundation of the housing market. If you follow the chain of move ups… – Tiny house movement loses ground to McMansions
Housing markets are dominated by millions of individuals making emotional decisions rather than a small number of highly-trained professionals.
People buy houses as family homes for emotional reasons, and not always rational ones. Many analytical people conduct research, analyze financial… – Most homebuyers make irrational purchase decisions
Banks reject most loan modifications because they really don’t want to modify loans, and in many cases, the applicant doesn’t deserve a break.
If they had it to do over again, lenders wouldn’t have made so many loans to weak borrowers during the housing bubble. Underwriting… – Banks reject 72% of loan modification applications
People should fear the consequences of being trapped underwater with an expensive mortgage on a cheap house.
During the housing bubble, nobody feared debt. When people believe real estate prices can only go up, then they see no risk in buying because they believe they can sell the property for… – Fear of housing debt is healthy and rational
Those who are no longer underwater but lack the equity for a move-up could sell if they wanted, but they are not listing their homes.
For many loanowners, the last eight years in borrower purgatory felt more like borrower hell. They’ve been trapped beneath their debts, and any remedies for t… – Lingering debt from housing bubble still keeps housing supply off the market
Government subsidy programs promote dependency, and they are expensive, but they provide a service needed by millions of people to alleviate poverty.
In a frontier society, there are no bailouts. Life on the frontier is harsh, and each family unit is self-reliant. In a frontier society, if… – Should policymakers curtail Section 8 housing benefits?