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2009 Financing Predictions

(Courtesy of Todd Huettner, Huettner Capital)

Todd Huettner’s 2009 Real Estate Financing Predictions

In no particular order:
– The housing market will bottom in the second quarter of 2009 stabilizing the financial markets and the economy.
– Mortgage interest rates will not go as low as many predict causing many homeowners to wait too long to realize huge savings from refinancing.
– Mortgage rates will be volatile yet remain in a 0.5% trading range with national averages between 4.875% and 5.375%. Rates for highly qualified borrowers are 0.125% – 0.250% lower.
– Borrowers will intentionally not take tax deductions to increase their income, and even amend prior returns, to qualify for loans due to the elimination of stated income programs.
– Tighter credit will prevent many borrowers from obtaining loans leading to an increase in owner financing and rent to own transactions.
– Rent rates will continue to rise as vacancy rates fall. Having been through a foreclosure/short sale or unable to qualify for loans with higher lending standards, a large group of people will have to rent homes for several years.
– While rates will remain relatively low for much of the year, tighter underwriting guidelines and regulations will increase the total cost of lending.

Call or email me to quickly look at your refinance or purchase. HAPPY NEW YEAR!

Todd Huettner
Mortgage Broker
Huettner Capital