Market Matters

our student loan is tanking the mortgage market Source: HousingWire   During 2013, the percentage of student loans classified as delinquent rose by 13 percent, which stands in sharp contrast to payment improvements for other credit types. Particularly troubling is the fact the government is backing much of this debt in a manner akin to its support of the housing market back in 2006 and 2007. Read the full story

Are High Housing Costs Killing the American Dream? Source: Moyers & Company   Interstate migration in America has remained at a mere 1.7 percent, which is far lower than the 3.5 percent mobility rate the country experienced in the 1950s. Data suggests that Americans are no longer migrating from places with low wages to places with higher wages because the reverse is happening. Some experts contend the primary cause for this trend is that housing costs have significantly outstripped household incomes. Read the full story

Who will feel the credit squeeze in 2014? Source: HousingWire The availability of credit for mortgage borrowers has been a pressing question for the recovery of the housing market, and in 2014, whether credit is too tight or too loose will be a lingering question due to a variety of market conditions that will present challenges for buyers. Economists from CoreLogic have released their analysis in the January MarketPulse report, and they anticipate the overall size of the mortgage market to be smaller than in 2013. Making sense of the story Credit availability is particularly tight for low credit-score borrowers, those unable to fully document their loans, and those who would like an adjustable-rate mortgage (ARM) product. According to the report, high-LTV (loan-to-value) lending remains modestly loose relative to normal, and high-DTI (debt-to-income) lending is modestly tight relative to normal. Since many subprime ARM loan products are no longer available, the share of ARM loans originated is much more restricted than normal. Simply put, the report notes that underwriting eligibility in the current market requires borrowers to possess good credit and the ability to document their loans fully. Cash sales comprised 37.4 percent of total home sales in September 2013, which is a decrease from a high in January 2011 when cash sales made up 46.1 percent of total home sales. According to CoreLogic, assessing the state of access to credit is difficult to determine because no single measure of credit availability exists. Read the full story