Pavaso CEO: CFPB eClosing mortgage pilot “historic event”

Pavaso CEO: CFPB eClosing mortgage pilot “historic event”

Makes buying a home easier for all Americans

Urban Institute: Qualified Mortgage impact overblown

New rules have only slightly slowed mortgage lending

WATCH: Former Wells Fargo CEO calls BofA fine “extortion”

Kovacevich says fine is political and has “nothing to do with justice”
W S
The Ticker

Homeowners motivated by rising prices

As bubble fears grow, buyers will either jump in or hold back

big house

Analysts toss around the word bubble like it's free money. But what does the term actually mean? While there is no clear answer, the classic 2004 housing bubble paper composed by Karl Case and Robert Schiller describes their version of a bubble:

Per CNBC:

We believe that in its widespread use the term refers to a situation in which excessive public expectations of future price increases cause prices to be temporarily elevated. First-time homebuyers may also worry during a housing bubble that if they do not buy now, they will not be able to afford a home later.

Following this definition, the article suggests we are not far from a bubble.

People buying homes are citing future price increases as one of the "key factors" motivating them to buy. The most recent survey by the real-estate company Redfin found that almost one third of buyers are motivated by rising prices.

Source: CNBC
Read full story

Recent Articles by Brena Swanson

Comments powered by Disqus