Smaller Down Payments/Easier Loan Qualifications Change Mortgage Market, Business and Industry Trends Analysis

Housing prices have soared in virtually all markets around the U.S. and in major markets around the world.  Shortages of inventory and low mortgage interest rates combined with the fact that investors purchased large numbers of homes to place on the rental market have driven housing prices higher and higher.  At the same time, new household formation surged, as many young people moved out of their parents’ homes and purchased or rented houses.  Meanwhile, massive numbers of existing homeowners refinanced their mortgages in recent months with 30-year loans at about 3% or less.  It remains to be seen how long…

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