Housing Market Recovery Slow, But Getting There

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Blue Home Loans takes a look at what home buyers have to contend with in the housing market today, and gives some help for those seeking the best mortgage scenarios.

The housing market has been slowly recovering from the last housing bubble burst, but this progress has not gone on without some bumps along the way. The latest edition of The State Of The Nation’s Housing, by the Harvard Joint Center For Housing Studies, released this June 26th gives a closer look at where housing is at right now and gives some insight into what potential home buyers will have to contend with when purchasing their homes. Blue Home Loans Inc., a California based full service mortgage company that has been service CA residents for many years, takes a look at this analysis and offers help to those who are seeking the best possible mortgage scenarios for their home purchase or refinance loans.

A June 26th report from Mortgage News Daily gives a good synopsis of the State of the Nation’s Housing report. The full MND report can be found here. This report says, “The U.S. housing recovery should regain its footing, but also faces a number of challenges. Tight credit, still elevated unemployment, and mounting student loan debt among young Americans are responsible for moderating growth and keeping millennials and other first-time homebuyers out of the market according to the latest edition of The State of the Nation's Housing released today by the Harvard Joint Center for Housing Studies. "The housing recovery is following the path of the broader economy," says Chris Herbert, the Center's research director. "As long as the economy remains on the path of slow, but steady improvement, housing should follow suit." The report takes an in depth look at the housing markets and their demographic drivers, homeownership, rental housing, and finally the challenges facing housing.”

Blue Home Loans explains that with a number of challenges facing new home buyers, including rising home prices, increasing interest rates ahead, and tighter loan requirements, it can seem like a better idea simply to rent a home than to buy one. While this could save money in the short run, in the long run, it is still cheaper to actually buy a family home. The fact that the rental market is also growing more costly is another reason potential home owners should not abandon their home buying plans without carefully considering the options. The above mentioned report says, “The share of cost-burdened renters (those paying housing costs in excess of 30 percent of their income) rose every year but one between 2001 and 2011 and now is over 50 percent. More than a quarter of households are severely cost burdened with half or more of their income spent on shelter. On the homeowner side the situation has improved as owners have refinanced at lower rates and many have existed homeownership because of foreclosures.”

The article says, “Looking ahead, the Center says the future course of homeownership will depend largely on the cost and availability of mortgage financing. Looser underwriting standards may help bolster the housing market recovery and the government appears to be taking steps to buoy the market with newly announced programs to lower FHA premiums, provide homebuyer counseling, and encourage lending to properly documented lower credit score buyers.”

Blue Home Loans can help California home buyers to find these loan programs that will serve as their entry to homeownership. As the company’s website says, "We make finding a loan simple because we have virtually every loan program available, regardless of the type of mortgage you are looking for. Whether you are dealing with bad credit, foreclosure, bankruptcy, or low credit scores, we can help you. It only takes us five minutes to find the right program that fits your needs."

For more information on how Blue Home Loans can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit BlueHomeLoans.com or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.

California Bureau of Real Estate -- BRE #01938557 NMLS #1162386

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Brandon Blue
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