The US government recently began to pullback the assistance it has been providing to the mortgage market to see if private lenders can pick up the slack, reports The Wall Street Journal.Critics are concerned the move will cause more issues in regions where housing demand has not yet recovered amid the slow economy.One recent move reduced the loan limits Congress expanded in 2008, allowing Fannie Mae, Freddie Mac and the Federal Housing Administration to buy mortgages up to $729,750. The FHA has financed nearly half of all home purchases since the market crash of 2008 and allowed buyers to make minimal down payments – many as low as 3.5 percent.”The net-net here is that the available pool of credit for housing is shrinking. Prices will have to decline,” Christopher Whalen, co-founder of Institutional Risk Analytics, told the WSJ.Some say home sellers are in for a suprise when there find much fewer potential buyers able to qualify after the government's retreat. The changes may deter “trade-up” buyers who would typically use home equity, which declined after 2008, as a down payment to finance the purchase of Houston real estate.Courtesy of 2M Realty News?

The amount of Americans who own their homes has seen its largest drop since the Great Depression, says the US Census Bureau.Home ownership fell to 65.1 percent in 2010, 1.1 percent lower than a decade earlier. In the 1930s homeownership plunged 4.2 percent.”Home ownership during the 2000s was really high in the middle of the decade, up to almost 70 percent at one point around 2004,” said Ellen Wilson, a survey statistician with the bureau.However, certain areas were hit harder than others. The Midwest had the highest rate of homeownership with 69.2 percent, the South with 66.7 percent, the Northeast with 62.2 percent, and the West with 60.5 percent.The Houston real estate market was also likely impacted as Texas saw the largest decrease in homeownership with a subsequent increase in renter occupancy with 19.8 percent. The state also had one of the largest percentage increases in housing units at 22.3 percent.There has also been a substantial growth in the number of vacant home across the country. According to the survey, there are 15 million empty homes, up from 10.4 million in 2000. Courtesy of 2M Realty News?

A recent report from Fitch Ratings revealed that a significant number of prime mortgage borrowers nationwide are experiencing troubles with their loan.The report relayed that more than one-third of all prime borrowers in private-label securitizations currently have negative equity. Fitch Ratings managing director Grant Bailey explained that despite modest gains recently, home prices will need to plunge further before a sustained recovery can take place.”With home prices likely to decline another 10 percent, roughly half of prime borrowers will wind up underwater on their mortgage,” said Bailey.The Fitch report also revealed that slightly more than 12 percent of all prime borrowers are seriously delinquent on their home loans. Bailey explained that prime mortgage default rates will continue to remain high, as home prices fall and the national unemployment rate stays high.Declining equity, rising delinquencies and growing payment shock risk led to negative rating actions for Fitch's review of residential mortgage-backed security transactions, the report showed.With a significant number of homeowners struggling with their loans, the Houston real estate market may experience a rise in foreclosures soon.Courtesy of 2M Realty News

According to the National Association of Home Builders' second edition of its First American Improving Markets Index, the number of improving housing sectors nearly doubled.The company's IMI showed that 23 individual housing markets showed better conditions during September, up from 12 in the previous report. To qualify, a market must show sustained improvement in terms of housing permits, employment and prices of homes for sale for at least six months.Texas had the most markets on the list with seven, including Amarillo, McAllen, Midland, Sherman, Waco, Odessa and Wichita Falls. Pittsburgh and New Orleans were the two most-improved markets, NAHB representatives relayed. The only region to drop from the list between editions was Bangor, Maine, as it experienced a drop in local building permits.”Both the number and geographic diversity of improving housing markets expanded this month, with Iowa, Illinois and South Carolina all newly represented by one entry or more on the list,” said NAHB chairman Bob Nielsen.While the Houston real estate market was not one of the 23 making the list, its housing statistics have shown monthly improvements for a significant period of time.Courtesy of 2M Realty News

According to Freddie Mac's Primary Mortgage Market Survey, October has started with a bang for prospective homeowners.For the week ending October 6, the average rate for a 30-year fixed loan sunk to 3.94 percent, down from 4.01 percent the week before and 4.27 percent during the same week the previous year. This marks the first time the rate has dropped below 4 percent since the beginning of Freddie Mac's survey in 1971. The average rate for a 15-year fixed loan was 3.26 percent, down from 3.28 percent the previous week.”Average 30-year conventional fixed mortgage rates fell below 4 percent for the first time in history this week following a sharp drop in 10-year Treasuries early in the week as concerns over a global recession grew,” said Frank Nothaft, Freddie Mac's chief economist and vice president. “Average 15-year fixed rates fell to a record low in the PMMS as well.”The average rate for a five-year adjustable-rate loan was 2.96 percent, declining from 3.02 percent the previous week and 3.47 percent the year before. Meanwhile, the rate for a one-year ARM averaged 2.95 percent, which was up from 2.83 percent the week before.With interest rates continuing to reach record lows, the Houston real estate sector may continue to experience success with more prospective homeowners entering the market.Courtesy of 2M Realty News

Speaking at a recent forum, National Association of Realtors president Ron Phipps relayed that the struggling housing sector needs to remain the nation's top priority.Phipps explained that homeownership affects all Americans and that a recovery in the housing sector could prompt better economic times.”As the leading advocate for homeownership, Realtors know that issues like affordable financing, natural disaster insurance, the mortgage interest deduction and foreclosures and short sales don't just affect people who own a home – homeownership shapes communities and strengthens the nation's economy,” said Phipps.Phipps advocated for stronger public policies that promote responsible and sustainable homeownership, which may help stabilize the market and support an economic recovery. He believes that legislative and regulatory help in the form of homeownership tax benefits may spur more real estate purchases and ease the nation's consumer tension.Furthermore, allowing more consumers to receive home loans, especially considering their record-low rates, may also provide a boost for the sector.The Houston real estate market is one of many examples that show how a better sector can improve consumer conditions. The region has recorded several straight months of higher home prices and greater real estate sales.Courtesy of 2M Realty News?

A recent article in The Wall Street Journal explained that many economists are predicting a rise in the nation's mortgage rates soon.”It's hard to imagine how long-term, 30-year fixed-rate mortgages could go lower than they are right now,” said Frank Nothaft, vice president and chief economist of Freddie Mac. “These are the cheapest rates we’ve ever seen.”The article explains that economists have been largely duped by the economy this year, with many not expecting it to weaken as badly as it did. These experts didn't foresee troubles in the European market, which maqny analysts believe led to lower consumer confidence, or for the Federal Reserve's Operation Twist, which was put in place to drive interest rates lower.For the week ending September 29, rates for 30-year fixed-loans averaged 4.01 percent, the lowest rate on record since Freddie Mac's Primary Mortgage Market Survey began in 1971.While Nothaft and other experts predict rates to rise, Bob Walters, chief economist at Quicken Loans, believes rates could push lower since 2011 has been full of surprises.With rates remaining low for a prolonged period, the Houston real estate market has benefited, recording better sales for several months, according to the Houston Association of Realtors.Courtesy of 2M Realty News

Roughly $27 billion was put into the Houston economy by the Houston Airport System in 2010, with hundreds of thousands of jobs created through HAS, a report by Aviation News Today states.According to the source, a study reveals HAS was responsible for 230,000 jobs in the Houston area last year, the majority of which were related to George Bush Intercontinental Airport.”As the results indicate, our diverse system of airports remain a driving force in Houston's regional economy and will provide a solid foundation for future economic growth and prosperity,” said Houston Airport System director Mario Diaz.This news follows the release of findings from the Associated General Contractors of America, which show that in the last year, no other U.S. metro added more construction jobs than Houston.Add to these factors that mortgage interest rates have hit record lows, and area homebuyers may find the fourth quarter of 2011 to be a prime time to secure loans and purchase Houston homes for sale.Courtesy of 2M Realty News

The Mortgage Bankers Association's most recent Weekly Mortgage Applications Survey showed a significant increase in home loan submissions, as more borrowers attempted to refinance their loans.The Market Composite Index, which gauges the volume of home loan submissions, was up 9.3 percent on a seasonally adjusted basis. Unadjusted, the index grew 9.2 percent. The Refinance Index, which measures how many borrowers applied to adjust their current loan, increased 11.2 percent, while the Purchase Index was up 2.6 percent on an adjusted basis from the previous week.”With lower rates, refinance application volume increased to its highest level since August 19, 2011,” said MBA vice president of Research and Economics Michael Fratantoni. “Purchase application volume also increased. However, the increase was in conventional purchase applications, which were up by 4.9 percent.”The four-week averages for the Market and Refinance Indices were up, growing 1.96 percent and 2.60 percent, respectively. The average for the Purchase Index declined 0.18 percent.With more mortgage applications being submitted during the week, more sales of Houston properties may take place soon and further improve the region's real estate market.Courtesy of 2M Realty News

According to the Federal Housing Finance Agency, the average interest rate of mortgages sold to government-sponsored enterprises fell during August, representing the fifth-straight month of declines.Overall, the interest rate averaged 4.56 percent during the month, down 1 basis point from July. In March, the rate averaged 4.84 percent, and has declined each month since.Frank Nothaft, Freddie Mac's chief economist and vice president, explained that the efforts of the Federal Reserve have helped pushed rates to lows not seen in a half-century. However, the Fed has offered to help even more, planning to purchase up to $400 billion in long-term Treasurys and new agency mortgage-backed securities beginning October 1. The Reserve believes doing so will allow rates to main at these historic lows.According to the FHFA report, the average rate for a 30-year fixed loan was 4.63 percent during August, down 6 basis points from July. For all fixed- and adjustable-rate mortgages, mortgages sold to GSEs was 4.52 percent, which fell 3 basis points from the previous months.With home loan rates remaining historically low, more Houston properties may be purchased in upcoming months, continuing the region's recent successful real estate run.Courtesy of 2M Realty News