Monday Morning Cup of Coffee: Bubble, bubble, toil and trouble

Monday Morning Cup of Coffee: Bubble, bubble, toil and trouble

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Lending

Buy a home before 2014

New rules, rising rates could mean fewer options

real estate contract
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The year 2014 will be a type of test market for the mortgage industry, with the Federal Reserve expected to eventually taper its mortgage securities purchases. 

Not to mention the fact that 2014 is forecasted to bring a rise in rates and new lending rules that are likely to reshape the process of acquiring a mortgage.

With all of that in mind, HomeFinder.com is advising consumers to consider buying homes before the end of this year.

The site goes as far as naming the top five reasons for buying real estate before the dawn of 2014.

Among them the fact that rates are already up one to 2% over last year, and it’s still possible to grab a 30-year, FRM at 4.5%, according to lenders cited by HomeFinder.

New lending rules, including the qualified mortgage definition, will shift debt-to-income ratio requirements higher, potentially making it more difficult to buy a property, the report claims.

Lower sales during the holidays also could mean more inventory to comb through.

And finally, anyone who buys before the end of the year can begin deducting the interest right away, maximizing tax deductions.

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