Summary
One of the final stages required for a real estate cycle recovery is buyer availability of funding, and the capitulation of sellers price expectation.
Analysis
Mortgage lending for homeowner refis will increase as the cost of interest lowers a point or so below the current contract.
New money purchases will rise as the balance of price and funding has occurred. Sellers have reconciled to the new market and buyers are confident that they can obtain a mortgage with monthly payments close in line with their current monthly rent payments.
Mark Mariotti consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
