The National Association of Realtors (Nar) has applauded officials for encouraging discussion on reform to the second mortgage market for US property. In a statement, Nar president Gary Thomas welcomed Senate Banking Committee chairman Tim Johnson's and ranking member Mike Crapo's move to begin a series of hearings about the future of second mortgages and sustainable finance reform.
"As the thoughtful policy discussions move ahead, Realtors (Nar) continue to advocate for a system that ensures creditworthy buyers always have access to safe, reliable mortgages such as 30-and 15-year fixed-rate loans, even in tough economic times when private lenders cannot, or will not, enter the market," Mr Thomas said.
He added that the goal of Nar - America's second largest trade association - is to simply help congress and the industry create a second mortgage market model capable of furthering US interests today and beyond. However, critics will be wary of creating a culture of high debt once again, leaving real estate and lenders vulnerable to a crash.
Currently, high mortgage interest rates are keeping a cap on lending in the US. This is also helping to slow down sales, with Nar's Pending Homes Sales Index showing a drop in transactions in July. Pending sales fell by 1.3 per cent over the month to 109.5, down from 110.9 in June. However, sales remain 6.7 per cent above July 2012 - the 27th consecutive month transactions have stayed above levels recorded in the previous year.
Lawrence Yun, Nar chief economist, isn't concerned about the drop-off in activity. He claims the contract level "remains elevated", but high mortgage interest rates and rising prices are affecting the market in expensive regions. At a time when many post-recession economies are fearful of overheating in the future, this may not be a bad thing. Controlling growth will be essential for places like the US and UK if the recovery is to be a sustainable one over the long-term.
Article by +https://plus.google.com/117987778295738303451?rel=author on behalf of Propertyshowrooms.com
"As the thoughtful policy discussions move ahead, Realtors (Nar) continue to advocate for a system that ensures creditworthy buyers always have access to safe, reliable mortgages such as 30-and 15-year fixed-rate loans, even in tough economic times when private lenders cannot, or will not, enter the market," Mr Thomas said.
He added that the goal of Nar - America's second largest trade association - is to simply help congress and the industry create a second mortgage market model capable of furthering US interests today and beyond. However, critics will be wary of creating a culture of high debt once again, leaving real estate and lenders vulnerable to a crash.
Currently, high mortgage interest rates are keeping a cap on lending in the US. This is also helping to slow down sales, with Nar's Pending Homes Sales Index showing a drop in transactions in July. Pending sales fell by 1.3 per cent over the month to 109.5, down from 110.9 in June. However, sales remain 6.7 per cent above July 2012 - the 27th consecutive month transactions have stayed above levels recorded in the previous year.
Lawrence Yun, Nar chief economist, isn't concerned about the drop-off in activity. He claims the contract level "remains elevated", but high mortgage interest rates and rising prices are affecting the market in expensive regions. At a time when many post-recession economies are fearful of overheating in the future, this may not be a bad thing. Controlling growth will be essential for places like the US and UK if the recovery is to be a sustainable one over the long-term.
Article by +https://plus.google.com/117987778295738303451?rel=author on behalf of Propertyshowrooms.com