Yesterday, I wrote about a Gallup Poll that indicated people were not optimistic about homeownership. Well, today we hear that banks are excited about a resurgence on home purchases (Home Purchases). What does it all mean? Who do you believe? Take a minute and read this article and you may get more confused.
Refinances were good in January and February, but home sales were down. Now it seems the refi’s are slowing down but according to activity in March home sales may be picking up. Rates are still low and home values are recovering in many areas. So maybe consumers aren’t optimistic about homeownership but it sure seems the banks are excited by the prospect of more people buying homes. Who’s right? Will home sales trend up, or down, or maybe stay about the same? I’m so confused.
Check out the comments about Florida. One guy says activity is brisk, and the market is back. While Corelogic reports that the Florida market still lags and had the second largest share of distressed home sales in January. That doesn’t sound all that good to me unless I’m looking for a bargain in Florida. Maybe, that’s why home sales may be improving there. Quicker sales on distressed homes at reduced prices. Not so great for local home values.
And, of course, they had to throw in the potential negative impact of the new TRID rules on this great recovery data. Not sure if or how the TRID rules will have an adverse effect on peoples’ decision to buy a home. I doubt if you ask any interested homebuyer, or the consumer on the street, about TRID and its potential effects on their decision to buy a home if they would have any idea of what you’re talking about. I would hazard a guess that it wouldn’t make any difference. Probably just confuse them.
- Do you believe home purchases will be affected by TRID?
- Will you hesitate to lend to new homebuyers or for a refinance because of the new TRID rules?
- Are you ready for TRID so you can take full advantage of the building momentum in home purchases?
- If not here’s a resource that may help you get ready (TRID Guide)
Don’t be confused. The housing market is improving and there are, and will be, plenty of people out there looking to buy homes. All you need to do is be sure you are ready to service them, and then you’ll capture your share of the loans. To do that, you need a professionally trained sales staff with an informed operational team supported by the systems and technology to manufacture quality, compliant loans. You do that and you’ll be fine.
I can report, without a doubt, home sales will go up, go down or stay about the same. TRID will come and all lenders will need to comply. Don’t be confused by all the smoke and mirrors. Pay no attention to that man behind the curtain. All you need to do is stay focused and be ready.
Maybe it’s not so confusing after all.