Many may be wondering what the agreement on the debt ceiling means for real estate. In a nutshell, not much. The housing market is still in a terrible slump and, as I have said before, will probably not recover until the job market recovers. Interest rates have taken yet another move down and rates are as low as I have seen them.
Naysayers would say that the reason that people are not seizing the opportunity to buy real estate at these historic low interest rates is because the government has over regulated the lending industry. Now while there certainly is A LOT more regulation than during the mortgage crisis, I, for one, think that it is a good thing. Previously, many buyers and refinancers would often come to the closing table and be presented with interest rates and closing costs that were not disclosed to them. Many mortgage brokers made a lot money by victimizing unsuspecting, inexperienced people. Now those mortgage brokers have gone back to their bartending and construction jobs (if they can find them) and the industry is required to disclose everything to borrowers and we are penalized if we do not. Now the industry is filled with professionals who will work for you.
Is all this regulation currently necessary? At this point, probably not. Was it warranted? Absolutely. Find a good mortgage broker. Your life will be easier. And you won't get screwed.
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