JSMedia – Many mortgage lenders say the outlook for homeowners is bleak after the latest housing report. More than 60 percent of home-owners are underwater, with 23 percent “underwater” and 5 more approaching that status. The economy is still in recession, and most people will have difficulty meeting tighter lending criteria. The housing market remains depressing, with the prospect of foreclosures and increased mortgage repayments looming large.
While interest rates have been historically low, household affordability has increased. People are building up arrears more slowly than in the past. And lenders are increasingly flexible with borrowers thanks to a range of government initiatives aimed at keeping people in their homes. For example, the Homeowner Mortgage Support scheme, which allows homeowners to defer up to 70 percent of their mortgage interest for two years, has helped many borrowers stay in their homes. The CML said this has resulted in more people contacting lenders than ever before.
However, the recent low interest rates make it easier for households to keep up with their mortgage payments, allowing them to build up arrears more slowly and give lenders more wiggle room to work with borrowers. Lenders are also benefiting from a range of government initiatives aimed at helping borrowers stay in their homes. The Homeowner Mortgage Support scheme, for example, allows borrowers to defer up to 70% of their interest for two years. This scheme, meanwhile, has led to a dramatic increase in calls from people who want to stay in their homes.
Mortgage Lenders Say Outlook For Homeowners Is Bleak After The Budget
The decline in the housing market has also led to a steep rise in interest rates. While the economy is largely stable at the moment, there is a risk that these rates may continue to rise in the near future. In the meantime, the housing market is expected to remain subdued. The slowing economy has resulted in a subdued remortgaging market, despite the government’s efforts to entice people to stay on their standard variable rate.
The decline in home sales reflects the decline in home prices. While home prices did skyrocket after the pandemic, the number of homes on the market has declined by 22.4% month-over-month and by 37.4% year-on-year, according to the latest data from the British Bankers’ Association. The numbers indicate that the housing market is rapidly slowing. The situation for homeowners is a bleak one.
While the current housing market is still in recovery, it is still a tough time for homeowners to purchase a home. The looming of the housing market has prompted many Americans to sell their homes. But they are struggling to make payments and have a high-quality home. The lack of affordability is causing homeowners to default on their mortgages lenders. As a result, most have a healthy equity cushion and are confident in their ability to keep their homes.
The housing market continues to experience a slowdown. Repossessions have reached record highs. Although the CFPB has proposed a rule to prevent home repossessions until 2022, this rule would only apply to mortgages through private lenders. Until then, the Consumer Financial Protection Bureau is seeking public comment until May 11 to get the final word from the public. It is important to note that the government is taking action now to save homeowners.
The low-interest rates offered in the past year have offered financial relief to homebuyers in the hot housing market, but they will not continue into 2022. In fact, the rates have steadily increased from 2.67% in January 2021 to 3.12% in mid-December, and have remained in the historic 3% range through the entire year. But the overall market is still in a good place, despite the deteriorating housing outlook.
With the ratio of home prices to earnings at record highs, the outlook for the housing market is bleak. The deterioration of the housing market will likely pass through to consumers’ spending, as the government is allowing loan servicers to modify more loans. As a result, the housing stock will remain subdued, and the affordability of houses will continue to be a major concern.