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Will mortgage lending get tighter in the next recession?

Housing Wire

As recession talk becomes more prevalent, some people are concerned that mortgage credit lending will get much tighter. One of the biggest reasons home sales crashed from their peak in 2005 was that the credit available to facilitate that boom in lending simply collapsed. The short (and long) answer is no, not a chance.

Lending 501
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US home prices continued to rally in July 2023

Housing Wire

“This is about the same rate of price growth that occurred during the 2002 through 2006 period when subprime lending drove exuberant housing demand. “But that is where the similarities end. Housing equity is at an all-time high, providing homeowners a very deep cushion against a downturn. ”

Inventory 474
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What will housing credit look like in next recession?

Housing Wire

With the banking crisis spurring more talk of a recession, the question now is: What would housing credit look like in a recession? housing market would crash during the pandemic. One of the main reasons for that fear was that housing credit was about to get tight, meaning fewer people could buy homes with mortgages.

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Is the Dallas Fed right to label this a housing bubble?

Housing Wire

The Dallas Fed on Thursday published an article titled: Real-Time Market Monitoring Finds Signs Of a Brewing U.S. Housing Bubble. The online reaction was immediate — housing must be about to crash. First, because there is no speculative debt demand going on today, there can’t be a housing bubble. Let me explain.

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Housing inventory falls under 1M again as sales collapse

Housing Wire

housing market , we just experienced an event that most people never thought could happen. However, in 2020 new listing data came back, and we don’t want to see the new listings continue to decline this year — that would be a double negative for the housing market. The days on market were too low.

Inventory 540
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6 key indicators for mortgage lenders to assess as market headwinds persist

Housing Wire

Amid the uncertain current environment, here are six key indicators we should look to for an accurate assessment of market conditions: Federal funds rate : While the current fed funds rate of 3.25% seems high, it also stood at more than 2% from October 2018 to September 2019. in September 2002. The index stood at 58.6

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Are we seeing a cash-out refinance crisis?

Housing Wire

I hear a lot of chatter about a boom in cash-out refinances, and the presumption seems to be that this is destined to wreak havoc on the housing market and the economy at some point. First, the refinance boom’s main driver in the 2000s was unhealthy because of the marketplace’s speculative unhealthy lending standards.

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