Share |

Thursday, March 03, 2011

The state of the California Real Estate Market (via CAR.org)

Talking Points …
  • The U.S. mortgage-lending landscape has changed from the height of the real estate cycle, when many lenders generously offered zero-interest terms and no-down payment loans.  Now, the situation is much different.  Most lenders have more stringent lending guidelines, and now require more documentation from borrowers.
  • Mortgage rates are near historic lows, hovering around 5 percent.  However, it’s unclear how long such rates will last, as rates are heavily affected by many factors, including the future of government-backed lenders Fannie Mae and Freddie Mac.
  • Lenders have increased the amount of documentation borrowers must provide to obtain a mortgage, such as documentation of income.  Processing times also have increased, making it particularly difficult for self-employed borrowers who have trouble providing proof of income.

No comments: