Election Update: Americans Want Action On Housing and Credit
Decisions made by the next President and Congress could change the way Americans buy and sell homes for generations to come. Rising prices are making it more difficult for working families and young adults to become homeowners. Government control over the vast majority of mortgages through Freddie Mac and Fannie Mae unnecessarily exposes taxpayers to risk and continue to stifle the innovation of new lending products that responsible borrowers need and want.
More business as usual?
Depending on who is elected this year’s presidential election could either deliver a mandate for Washington to act on far-reaching reforms integral to our system of housing finance or bring more business as usual.
Here are the priorities Americans want the next President and Congress to address, according to a new research conducted for loanDepot, the nation’s second largest nonbank consumer lender:
* Make homeownership more affordable for middle- and lower-income families (37 percent).
* Keep interest rates low, especially during the first 100 days of the new presidency (34 percent).
* Make more credit available to small businesses (11 percent).
Few see the election improving their pocketbooks
Most Americans expect their personal financial situation to either stay the same or get worse when new leaders take over the White House and Congress. Only 6 percent think that they will be better off as a result of the election.
Each vote counts
One out of every five Americans said the candidates’ housing and finance policies will influence their vote. Another 40 percent have not yet made up their minds. That is because only 9 percent think the candidates have done a good job articulating their positions on the economic issues that affect peoples’ daily lives.
Perception doesn’t match reality
Some 77 percent think it is just as hard or even harder to get a loan today than during the Great Recession eight years ago. Young adults may be more discouraged than most; they worry about not making enough money and nearly half (46 percent) fear the election outcome will make it even harder to get a loan.
In fact, while guidelines have tightened since 2008, applications for purchase mortgages were more likely to be denied in 2008 than in 2014, the most recent year for which Federal Reserve data is available. Denial rates for home purchase loan applications hit 18 percent in 2008, while denials in 2014 topped out at 13 percent. Denial rates for home refinance applications in 2008 were 38 percent and dropped to 31 percent in 2014.
Find out if you qualify for a home loan
Getting into the home of your dreams may be easier than you think. All you have to do is get pre-qualified by the local lender of your choice. Don’t know a lender? Contact us and we’ll be glad to recommend someone.
Courtesy of Wilmington DE Realtors Tucker Robbins and Carol Arnott Robbins.