So, here we are... already into February!  It's cold and gray outside now, but Spring is on its way! And this is historically the time of year when the real estate market begins to heat up!   According to Greg Ramer, a lender here with Iberia Mortgage, there are some things that buyers and sellers will want to know regarding loan approvals and interest rates this Spring.  The news is generally good.  Have a look:

"January 2014 brought about the latest installation of changes enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act.  While it’s likely that these latest changes could cause some marginal borrowers a loan approval, my opinion is such that the greatest impact will be felt by mortgage banks themselves through enhancements to back end processes that borrowers never see or are impacted by.  The majority of this discussion has focused on the 43% maximum debt to income ratio, however, we continue to be able to approve loans above this figure.  What further adjustments are made in the future is up for debate.  But for now, it appears to be business as usual, however that is best defined nowadays!

The Mortgage Bankers Association issued its 18 month projections for the real estate industry.  According to the MBA, over the next 18 months, we can expect to see steady gains in housing starts, existing and new home sales, home valuations and, lastly, interest rates.  That’s right, interest rates are projected to steadily be on the rise of the next year and a half.  For potential home buyers who have been putting off that move for the “perfect time”, you may need to go ahead and convince yourself that the perfect time has come.  Home buyers need to consider the impact of the cost of funds as it relates to their buying power."

Thanks to Greg for this insight!  As always, please feel free to give me a call if you have any questions about the market or your own home.  I am always happy to help!