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The stock market is focused on earnings not housing. Even still, this is a seasonally adjusted number and not very important really as construction always goes up in the summer. Ever tried building a house in Jan in Wisconsin?
yoy new construction is off close to 50% and nearly 75% from the bubble days. Not exactly a thriving market.
Thanks for the info. So, if that's true, why isn't EVERYONE getting FHA? Are the rates better for conventional loans or something like that?
Edited to add: I looked it up and noticed that with FHA, instead of pmi you have to pay an upfront insurance fee of 1.5% and then .5%/year afterwards. Which is less than pmi, but still insurance.
Jumping back towards the beginning -- why are lower prices supposed to be such a bad thing?
It appears the real estate was never worth what some folks thought it was and now we have ran short of "Greater Fools" (a Greater Fool being the next person to buy at a higher price).
So cut the prices and move on. What is the big deal?
Not just a difference in terms, different philosophy
Quote:
Originally Posted by Traderx
FHA is gov't backed so no need to private mortgage insurance. If you don't pay the gov't steps in and cover's the lender.
FHA loans carry Up Front Mortgage Insurance Premiums which MUST be financed over the life of the loan. This can be a significant expense and can lead to big money.
FHA loans carry Up Front Mortgage Insurance Premiums which MUST be financed over the life of the loan. This can be a significant expense and can lead to big money.
Thats not exactly accurate.. Most all FHA loans are backed by MMI and when backed by MMI, MIP is not required. And, even when MIP is required once you hit 78% LTV it is cancelled. Therefore it does not run over the life of the loan.
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Not just a difference in terms, different philosophy
